"A default fund is essentially a mutualized indemnity vehicle: as with all insurance-like products, it is both safer and more cost-effective to diversify your risk."

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"A default fund is essentially a mutualized indemnity vehicle: as with all insurance-like products, it is both safer and more cost-effective to diversify your risk."

--Kim Taylor, president at CME Clearing, on the rationale behind not creating a separate credit default swap default fund.

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