shygye Posted October 11, 2008 Report Share Posted October 11, 2008 The payouts on the CDS is one reason stocks are tanking. The companies have to raise cash to pay off the "insurance". Link Today's auction determined that investors who bet on a default of Lehman's debt by buying derivatives called credit- default swaps should get 91.375 cents on their dollar. The price was set by auction administrators Creditex Group Inc. and Markit Group Ltd., with 14 financial institutions bidding. That figure was calculated based on an ``inside market midpoint'' price of 8.625 cents on the dollar for Lehman's debt. Link to comment Share on other sites More sharing options...
Steve Posted October 11, 2008 Report Share Posted October 11, 2008 Blame Clinton and the CRA. :smirk: Link to comment Share on other sites More sharing options...
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