BDHPlayer

Credit Default Swaps May Be Playing a Supporting Role in Chrysler Bankruptcy Filings

I don't have any sympathy for Chrysler or the unions. Secured lenders are exactly that . To get the short end of the stick because the adminstration decided that should be the case is wrong.

The bankruptcy process should protect the secured lenders and modify the union contracts to make them competitive with the contracts of domestic based non union auto manufacturers.

Why would anyone want to lend to Companies on a secured basis for the low interest rates that secured loans pay?

Bank and Broker Default Risk

What I find interesting about these numbers is that BCS and ING have lower CDS rices thatn JP Morgan. If you look at the preferred stocks of these companies, they are yielding in the area of 40% per year.

Which market is right?