So what happens to a CDS if there is credit improvement where the underlying bonds are doing better than expected? Birkdale here, has bought protection from Augusta. Notional is $10 million, and the reference is Muirfield PLC bonds. The premium is 55 bps per annum, and the term is one year. Two days into the trade, no credit event has occurred but Muirfield is experiencing better trading conditions and the CDS spread goes down by 30 basis points, to reflect this. Birkdale unwinds the trade. So what are the cash flows here? Well, the original premium was $55,000, which Birkdale has to pay, but of course, they can now close out the CDS position by going short the CDS or selling the CDS and therefore receiving 25 bps per annum. So net net, this position has cost them $30,000 in a short amount of time. And of course Augusta would've made the same amount.