Financial derivatives contracts that transfer credit risk of a borrower from one party to another.
1 take · first discussed Jan 4, 2025
Private company — no public price to score. We track what they said; valuation-mark tracking is on the roadmap.
Among the four All-In hosts, only Chamath has offered a view on buying CDS protection, expressing medium conviction bullishness as of early January 2025. He frames the position not as a primary bet but as a tail-risk hedge — an insurance policy against a systemic credit or banking crisis — citing debt concentration, elevated interest rates, and S&P 500 index concentration as the underlying vulnerabilities. Chamath draws an explicit parallel to Bill Ackman's highly profitable CDS trade at the onset of COVID, suggesting that if such a crisis materializes, long CDS could be the best-performing asset of 2025. No other hosts provided views on this instrument, so no agreement or disagreement among the group can be assessed.
Chamath says he would be long CDS (buying protection) as an insurance policy against a tail-risk credit/bank crisis in 2025, citing debt concentration, high rates, and S&P index concentration as systemic risks.
I would be long CDS. So what am I buying? I am buying insurance. I'm buying insurance using credit default swaps. I'm buying what's called protection... if it hits, it will be the best performing asset of 2025. It will be the equivalent of”1:15:35