Goldman to JPMorgan Swap Trades Soar on Risks-Bloomberg

This article wrongfully states that investors are buying credit default swaps on Wall Street Banks to protect themselves. ┬áRealistically most credit default swaps are used as a speculation tool similar to shorting. ┬áThe difference is that CDS markets have a lot less reliable liquidity and can easily be distorted by larger traders such as JP Morgan’s “London Whale.” ┬áCapital markets would be far better if all CDS traded on exchanges and were regulated in a similar fashion to other securities.

http://www.bloomberg.com/news/2012-05-25/goldman-to-jpmorgan-swap-trades-soar-on-risks.html

INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.