Chapter 46: The End of the 80s (6)
“Someone you can trust?”
Ha Yeong-il looked at me, puzzled.
“Yeah, someone I can trust. How much do you trust me—specifically, the orders I give you?”
He thought about it for a moment before answering.
“...I trust your judgment more than my father’s.”
“Ahaha, now that’s nice to hear.”
I beamed and nodded, then pulled out a document and placed it in front of him. It was a CDS contract.
Ha Yeong-il glanced over it and let out a low sigh.
“Czech Republic, Poland, Hungary... but this isn’t... these aren’t government bonds. These are all CDS for corporate bonds tied to Eastern Europe. And the sell position is ours.”
“Exactly. That’s why the premiums are pretty high.”
A CDS is insurance in case the bond issuer defaults. So corporate bonds, which are less reliable than government bonds, come with higher premiums.
“...Are you sure about this? I’m not an expert, but... these companies don’t exactly have a great reputation. If they go under, we’ll have to pay out.”