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Who provides insurance on US Treasuries and how do the insurance work?
Explain how this insurance works
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August 05, 2009 02:10 PM
noone...a bank or insurance company could, however...that would mean that bank or insurance company would still be in business and had the money (presumably not in dollars) to pay the value of the debt out if it defaulted...but then they'd have to pay you the dollar equivalent at that time which would presumably would have sharply depreciated by then so you would have to set the policy up in a foreign currency tht would presumably hold up if the US defaulted on their debt and at the current exchange rate rather than the exchange rate on the day there was a default on the US debt...probably the reason there isn't a lot of insurance on the debt.
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