"Goldman Sachs (GS) is pitching a new investment idea to clients this week: Bet on J.C. Penney (JCP) going under. In a new research note, the investment bank suggested that clients buy credit-default swaps tied to the struggling retailer, financial instruments that act like insurance on bonds and pay out when a company defaults. Not surprisingly, prices for those swaps spiked this morning while shares of J.C. Penney headed in the opposite direction."