On Thu, Apr 30, 2009 at 4:13 PM, Doug Henwood <[email protected]> wrote:
> But if some of the renegades held credit default swaps that pay off in the
> event of bankruptcy, they're a lot better off now than they would have been.
>


True, but from what I have read, there is no evidence that these hedge
funds have any substantial CDS coverage, only speculation. Also who in
their right mind would write large CDS contracts on an opaque
over-leveraged private equity owned company's debts? I hope AIG
didn't, but I understand that they stopped writing CDSes in 2005. But
who knows...

In any event, this only shows that these hedge fund gamblers may be
even better off than we might think. So much for the theory that they
are being victimized in favor of the unions..
-raghu.


--
"Last night my friend drank 26 bottles of O'Douls... He is a
non-alcoholic." - Mitch Hedberg
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