Primus seeks to relaunch CDS protection business

Primus Guaranty, the credit derivatives product company (CDPC) and asset manager, is looking into the possibility of setting up a new entity to sell credit protection, but unlike its existing business model, the new venture would post collateral.

CDPCs sell protection on single-name CDS and senior tranches of collateralised debt obligations. As they are not required to post collateral, CDPCs relied on triple-A ratings to entice banks and other parties to conduct business with them. But in a mark

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