By Anthony Nolan and Hilda Li (June 6, 2018, 3:43 PM EDT) -- The recently completed exchange offer for K. Hovnanian Enterprises' 8 percent 2019 senior notes has roiled the world of credit default swaps, or CDS; some observers have gone so far as to call it an existential problem for CDS. At least one lawsuit has been filed, and the International Swaps and Derivatives Association and the U.S. Commodity Futures Trading Commission have expressed concern about market manipulation.[1] This issue has distinct implications for corporate issuers of debt, protection sellers and protection buyers. As Tolstoy might have put it best if he were writing about financial markets rather than unrequited love, "all happy market players are alike; each unhappy market player is unhappy in its own way depending on its place in the market."...