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To: yard_man who wrote (50769)12/22/2000 1:23:13 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
the notional amount IS the real exposure...that's the value of the underlying. imo the entire chain of counterparties is exactly as strong as its weakest link. and i imagine there is more than ONE weak link there. note: the models used to determine value at risk do not incorporate the possibility that liquidity might simply disappear. which is what it usually does at precisely the moment someone in the chain actually fails.