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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (4182)	2/11/2008 5:04:47 AM
From: Real Man	Read Replies (1) \| Respond to of 71442

Well, I heard that, and it's not very comforting, as counterparty defaults can cascade through that domino system. Credit derivatives obviously can blow up, all the way to the notional, and the counterparty risk is huge. The bulk of these contracts by notional are interest rate swaps, probably between fixed and libor. Another big, but smaller part are currency swaps. Given what libor and currencies have been doing, I would not assume these contracts are completely OK, but Ted spread seems to be doing better now. bloomberg.com