Begin forwarded message:
From: "Norman MacLeod" <gaelwolf@waypt.com>
Date: October 22, 2008 9:31:56 PM EDT
To: <dave@farber.net>
Subject: RE: [IP] Re: Credit Default Swap (CDS) - Lehman Final Results In
OK . . . so it’s a good thing that the Depository Trust and Clearing Corporation has valued CDSs at 1.3 cents on the dollar?
. . . and what then is the face value of all those other CDSs out there in the wild? If they are redeemable at similar values . . . what does that do to the global economy?
Norman
From: David Farber [mailto:dave@farber.net]
Sent: Wednesday, October 22, 2008 5:18 PM
To: ip
Subject: [IP] Re: Credit Default Swap (CDS) - Lehman Final Results In
Sent: Wednesday, October 22, 2008 5:18 PM
To: ip
Subject: [IP] Re: Credit Default Swap (CDS) - Lehman Final Results In
Begin forwarded message:
Date: October 22, 2008 5:58:32 PM EDT
Subject: RE: [IP] Credit Default Swap (CDS) - Lehman Final Results In
Sellers of insurance on Lehman Brothers debt made net payments of $5.2 billion to settle an estimated $400 billion or more in credit default swaps, the Depository Trust and Clearing Corporation said Wednesday.
As predicted, the net payments were a fraction of the $400 billion. Its interesting to me that despite the fact that the Depository Trust and Clearing Corporation said this was going to happen, there was still lots of fear last week that the number was going to be in the 100's of billions.
-Steve
