maryanne

Counterparty Risk and the Subprime Fiasco

Excellent article with the best ever (1.5 years later) clear example of counterparty risk. Highly recommend! Note that the author had the foresight to see the credit crisis coming and those two failed counterparties turned out to be Lehman Brothers and AIG. The taxpayers were forced to make good on AIG's obligations. .

Financial Landscape: Writedowns, Losses and Capital Raised

I would think so, RBS preferreds are going for less than half of par value AGAIN. sold one at $15 going down on monday, brought it back at $10 tuesday. so that helped reduced my loss (originally brought at par!)