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Non-Tech : Bill Wexler's Trading Cabana

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To: RockyBalboa who wrote (1561)11/7/2006 5:35:32 AM
From: RockyBalboa  Read Replies (1) of 6370
 
The issue is that ISDA had to create a mechanism to allow for a smooth settlement and learning lessons from problematic physical settlements.
At the same time one has to wonder whether the tail wags the dog. The tail... evidenced by billions on derivatives tacked on a hundred millions of auctionable debt (face value) which is worth even less -perhaps as little as 100 Mil whereas the payout from CDS will nearly approach notional value.
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