Trading volumes in sovereign credit default swaps have jumped fivefold since the collapse of Lehman Brothers in mid-September, bankers said. "The Lehman event was a big turning point for sovereign CDS. Bank risk started to be transferred to governments, and investors wanted protection on sovereigns," said Francois Puget of BNP Paribas. "For the first time, people were thinking the unthinkable -- that a triple-A country could actually default -- and that brought a lot of investors into the sovereign CDS market."

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