[trader220]

Originally Posted by Rick Brooklyn

My guess is if you want to sell and you can't find a buyer, you get a bid at lower than cost or market, minus a healthy discount.

CDS wouldn't be the right instrument for shorting though. You should be able to borrow some shares from someone who has them (for a fee) then sell them to someone who wants to go long, then buy them back from someone who wants to sell and deliver them back to who lent them to you.

I made the same joke a year ago.... given my screen name and my 21 years as a derivatives trader in addition to the fact that I am in the Porsche business now, I frequently get PM's asking about the global capital markets and the Porsche markets.

I said a months maybe a year ago when people started asking me about cars as an asset class for their porfolio its time to short the market. I was asking for a CDS on collector cars as a joke knowing its technically not the right derivative to capitalize on the falling market but... No one has actually monetized their collection. No one has sold equity participation's in their collections. Technically what you would need is some type of OTC derivative on a collection with some agreed upon benchmark.

I also think that boat has sailed and even if you could short the market via some sort of derivative the premium on that derivative would be and should be priced pretty high given the falling market.