...so there is a limited downside risk unlike shorting stocks?
And the upside is still (theoretically) the full price at the time you short it because it could in principle drop to zero if the debtor defaults? Is that correct?
Correct on both counts.
...so there is a limited downside risk unlike shorting stocks?
And the upside is still (theoretically) the full price at the time you short it because it could in principle drop to zero if the debtor defaults? Is that correct?
Correct on both counts.