USD-denominated Credit Default Swaps on US Treasuries (which were a thing in 2008) fall in this category. Any scenario bad enough for the swaps to be redeemable is one in which you are unlikely to be able to redeem them.<p><a href="http:&#x2F;&#x2F;www.bloombergview.com&#x2F;articles&#x2F;2013-09-26&#x2F;why-would-anyone-buy-credit-default-swaps-on-the-u-s-" rel="nofollow">http:&#x2F;&#x2F;www.bloombergview.com&#x2F;articles&#x2F;2013-09-26&#x2F;why-would-a...</a>