1. What is the difference between CDS and insurance:
   1. Insurance pays you money when an underlying asset is experiencing a loss of value, and CDS is repackaged mortgage loans, so you get paid when people pay off their mortgages.
   2. Insurance is based on the idea of diversification of risks, meaning that bad events happen randomly to one of the assets from the group and CDS is not.
   3. Insurance can be purchased separately from the asset, but CDS is always linked to an asset.
   4. CDS is fundamentally the same as insurance, it is just used for insuring financial assets, and insurance is used to insure real assets.