Let's look at a CDS where there has been credit deterioration. So Birkdale has bought from Augusta with a notion of $10,000,000 protection on Muirfield Plc bonds. The premium is 55 bps per annum, and the term is one year. However, two days into the trade no credit event has occurred. But Muirfield is experiencing difficult trading conditions. So Muirfield, the underlying bond issuer here, is in trouble. The CDS spread goes up by 40 basis points to reflect this, and Birkdale unwinds the trade. So clearly things have gone in the right direction here for Birkdale, 'cause they were effectively short this bond. They had bought protection on it. What can they do now? Well they can close out the CDS position by selling the CDS. Of course, now they would receive 95 bps per annum, 55 bps plus 40 bps. And by closing out the CDS, they're now realizing that profit of $40,000. Augusta, of course, are facing the opposite cash flows here. Successful speculation by Birkdale.