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

To: Paul Kern who wrote (85706)	8/30/2007 9:25:47 AM
From: 10K a day	Respond to of 110194

>there ain't no stinkin' counterparty for a lot of these things,<< Is that why they call them 'liar loans' -g-

To: Paul Kern who wrote (85706)	8/30/2007 9:33:28 AM
From: stan_hughes	Read Replies (2) \| Respond to of 110194

Scary stuff -- so at the end of the day, who's going to take it in the shorts? If not the big WS broker/banks, who's on the hook? Somebody like CALPERS? Do you know of any empirical data available where one might get a glimpse of who holds a lot of swaps and therefore think they're covered but is really sitting on a big surprise? Re: CDS resales, I'm no contract lawyer but I would also think that if a given assignee failed to perform when exercised, the liability would revert to the previous holder and so on, would it not? Granted that legal wrangling could potentially interfere with the backing up of the chain of liability in this fashion for years, but would that not still be the process?