If it walks like insurance, swims like insurance, and quacks like insurance, it should be treated like insurance with issuers having to have sufficient reserves to pay the potential obligation in full.
Problem solved.
If it walks like insurance, swims like insurance, and quacks like insurance, it should be treated like insurance with issuers having to have sufficient reserves to pay the potential obligation in full.I didn't get the impression it was supposed to be insurance, but more akin to shorting a stock, industry, etc. This is an informed bet, not paying for accident insurance, IMHO.