Well, hopefully we can avoid that set of circumstances.
And your point is understood. But the market is voting on a multitude of relevant variables, including, for example the likelihood of a deterioration in the rule of law for any period of time.
The final point being that understanding the terms of these contracts, which I gather are pretty sublime, is a real edge.
Oh, absolutely! The fine print of what constitutes a “default” action for the terms of the swap is where you really, really want to dig in and understand things. Some of these contracts toss in a bunch of actions which, while material and valid concerns, do not constitute a “default” on the debt in the literal sense.