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Suppose that instead of rebounding, the firm involved fails. What would happen to the price of CDS on this company's debt? Who would gain from

Suppose that instead of rebounding, the firm involved fails. What would happen to the price of CDS on this company's debt? Who would gain from the firm failing: Credit Suisse or its counterparties?

If the firm involved failed then CDS prices would since the chances of a payoff on the CDS has

As a result of the firm failing Credit Suisse would end up

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