Someone Actually Bought CDS on Italy from Milan?

 When stories like this come out, you know there's more than a little bit of trouble afoot. Beyond the strong arm tactics being used by the Milanese government, there is this little nugget:

In 2007, Milan also sold a credit-default swap, exposing itself to the risk that the Republic of Italy might default
What kind of lunatic buys insurance against Italy going bankrupt from an Italian city?