January 26, 2009 at 09:45 AM EST
CDS Investors Shouldn't Pay for Being Right
I generally like the work of Gretchen Morgenson financial columnist for the New York Times. But in recommending the cancellation of all credit-default swap (CDS) contracts in Sunday’s edition she has gone wrong. Indeed her argument is inconsistent. She rightly blames institutions that sold these insurance policies on corporate debt too cheaply for much of the trouble that followed. I will take it one step further. The asset allocators who bought into those hedge funds which were selling cheap CDSs were often doing so with borrowed money creating multiple layers of leverage on an intrinsically flawed premise. Two or ...
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here