Scotland secession: would UK CDSs be affected?

Analysts split on crucial questions for CDS protection holders

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Everybody likes getting something for nothing. Should Scotland vote in favour of independence on September 18, holders of credit default swap (CDS) protection on the UK may be in line for just that, thanks to a grey area in the wording of the contracts that underpin them.

If Scotland were to secede from the UK – something that could happen as early as the first quarter of 2016 – it would probably take with it a 10% GDP-weighted share of the UK's £1.3 trillion debt pile, as measured by outstandin