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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (54175)	2/18/2006 12:29:21 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

Rising price of oil would be hugely deflationary Mish

To: John Vosilla who wrote (54175)	2/18/2006 2:49:38 PM
From: shades	Respond to of 110194

"Investors probably held credit-default swaps insuring more than $20 billion of Delphi debt, or about 10 times the amount of outstanding bonds at the time of its bankruptcy filing, according to Fitch Ratings. The shortage of bonds to settle the contracts drove the price of the Troy, Michigan-based company's notes to 70 cents on the dollar on Oct. 31 from 57 cents two weeks earlier. The bond price returned to below 60 cents after ISDA resolved the market squeeze through an auction that enabled investors who bought Delphi credit-default swaps as part of a benchmark debt insurance index to settle their contracts with cash instead of bonds. ISDA is now working on a way to expand cash settlement agreements to also cover individual contracts. " bloomberg.com