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

To: RockyBalboa who wrote (16240)1/11/2009 8:30:59 PM
From: axial  Read Replies (1) | Respond to of 71455
 
Thanks RB.

"That means the seller of default protection had to fork over 91.375 cents on the dollar."

Yikes.

"There have been other auctions where CDS for senior debt was indeed settled for a 10% loss or better. But not Lehman. Oh, and Tribune debt was settled for - lo and behold, 1.5%."

That's interesting. Trying to get a handle on default rates for derivatives in general, at $1 quadrillion, 10% is a paltry $100 trillion :(

Only a few years ago, $100 billion seemed like big number. That was then.

Jim



To: RockyBalboa who wrote (16240)1/11/2009 9:17:46 PM
From: carranza2  Read Replies (1) | Respond to of 71455
 
Portfolio compression has also led to some netting out of redundant trades, but there is still a heck of a lot of 'stuff' out there.

economictimes.indiatimes.com

Incredible that billions worth of redundant trades even took place. No one seems to have had a very good handle on who had what or in what amounts. Or cared very much.

Stunning


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