ddavid

Bailout Datapoint of the Day, AIG Edition

What I learned today its not the fact that AIG is has to cover the actual value of the underlying CDS, but that hedge funds tripled the insurance protection against the CDS in case of failure. That like insuring your house 3 times its replacement cost.
Just a note to pass on, if true ?

Lehman's CDS Mess: Who's on the Hook?

Thanks Bo Peng for your article. It helped round out my picture and makes perfect sense. Although there will always be the devil in details, lets hope we can clean up this mess - I do hope your right about Bond Holders will be made whole - I have a dear friend 82 age who counts her bond income to pay for her nursing home & medical expenses.