How do I profit from a Treasury Default?
Well, I need your collective wisdom for this foolish (small “f”) question.
Proposition: political gridlock will not respond to prune juice or naval jelly, and the Treasury defaults on an interest payment on one of its issues.
I know that credit default swaps on Treasury paper exist, and are regularly bought and sold, but by the likes of GS. As a small investor to whom $2K is standard, is there a way for me to buy one of the CDSs or substitute?
I am fully cognizant that I could simply buy an ETF/ETN that is short Treasury paper, but that is not my question. I want a CDS that pays off, if and when there is a Treasury default.