Top CDS basis trader Ben Heller tells Reuters blogger Felix Salmon that credit default swaps are "fatally flawed", he is leaving the CDS market, and states that if the banks and the ISDA were smart, they would scuttle the CDS market, and use a set of emerging market bond futures rather than CDS to hedge their bond risk. As Jim Sinclair has informed us repeatedly, cancelling the entire CDS market might have been possible pre-Lehman, but now the banksters are stuck with their Frankenstein.
