Fears of Lehman's CDS derivatives haunt markets

[David Farber <dave () farber net>]

Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: October 16, 2008 11:43:00 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] Fears of Lehman's CDS derivatives haunt markets

[Note:  This item comes from reader Jack Unger.  DLH]

From: Jack Unger <junger () ask-wi com>
Date: October 16, 2008 7:56:44 PM PDT
To: Dewayne Hendricks <dewayne () warpspeed com>
Subject: Fears of Lehman's CDS derivatives haunt markets


It is a full week after bankers gathered in New York to start
sorting out the derivatives mess left by the bankruptcy of Lehman
Brothers. We still do not know who is on the hook for some $360bn of
default insurance, or how much they will have to pay.

Ominous talk of big names and big sums continues to haunt global  
markets, thwarting efforts by the US and European authorities to  
unlock inter-bank lending. Traders have noted with acute interest that  
insurer AIG - now nationalised - says it will need another $38bn from  
the US government, on top of the $85bn bail-out it has already  
received. AIG is the world's biggest underwriter of credit protection.

Those on the wrong side of these Lehman debt contracts - known as  
credit default swaps (CDS) - must come up with the money by Tuesday,  
the next D-Day in the ever-fraught calendar of the credit markets.  
There has been a deafening silence so far...

<http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3211647/Fears-of-Lehmans-CDS-derivatives-haunt-markets.html 
>
RSS Feed: <http://www.warpspeed.com/wordpress>




-------------------------------------------
Archives: https://www.listbox.com/member/archive/247/=now
RSS Feed: https://www.listbox.com/member/archive/rss/247/
Powered by Listbox: http://www.listbox.com