So other than totally cratering and taking with it all its equity holders, Lehman is doing just fine today. The CDS settlement, you know, the one everyone was worried about, turned out to pan out nicely. Or so far it has. Kudos to Felix Salmon for having called that one nicely.
Fears about Lehman CDS deadline seen as overstated [Reuters]
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Onesies.
How much of the settlement was completed on Tue Oct 21, 2008 6:36am EDT (time of this article)?
CDS = Cold Dog Shit
Godspeed.
can we get some pictures
@4
Sure…
http://knaddison.com/system/files?file=48288248_3710e00d36_m.jpg
@3, classic…
PM of Fund: So how much is our CDS trade worth?
Trader of Fund: About as much as Cold Dog Shit.
~SEG
me thinks that sue herrera has had quite a few POWER LUNCHES. hehehehehehehehehehehehe!!!!!!!!!!!!!
There is a chatter of a European macro fund unwinding all type’s of trades… check out the currency markets today…
Shhh, I’ve been making money trading against people liquidating on fear of liquidations.
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CDS = Soon-to-be-banned product (unless you own the underlying debt).
@9
That may be the case (although not to the degree it seems you’re implying), but do not forget, where there is a will (to make $) there is a way (to get around the rules).
There will be another “CDS”, just give it time…
ep, im surprised you DB girls havent had anything up about this gem-
http://www.guardian.co.uk/business/2008/oct/18/banking-useconomy
The Lehman CDS settlement probably did create a shitstorm of problems, but that happened last week and won’t be happening today.
Most of the CDS writers had to post collateral all along, so much of this “settlement” has already happened. Because of that need to post collateral, the counterparties should already be aware of anyone who might “fail.”
Beyond that, if anyone needed to sell equities to raise cash for the settlement, they needed to do it at least three days ago so they’d have their cash today.
If anything, there may have been a lot of cash tied up in the settlement juggle (Amy has to post collateral to Bob, Bob post collateral to Charlie, and Charlie posts collateral to Amy) as there is no central clearing house, and some of that juggle may come home today.
If that happens, look for a pop in some asset class – whether people buy Treasuries or stocks or lend it out in the overnight market, a bunch of money might be looking for a home today.
@11 – please go back under your rock, or alternatively, type “Lahde” into the Keyword Search box above.
@trojan- EPIC FAIL. they wrote about this on friday.
at # 11 that was last thurs. or fri. girlfriend.
at # 11 that was last thurs. or fri. girlfriend.
at # 11 that was last thurs. or fri. girlfriend.
JPMorgan Chase & Co. was chosen to run five special funds that will buy
certificates of deposit, bank notes and commercial paper from money market
mutual funds. The Fed will lend up to $540 billion to the five funds to
support the effort.
Fed officials said that about $500 billion had flowed out of prime
money-market funds since August as investors began to worry about their
ability to redeem their investments. On Sept. 18, the Treasury Department
announced it was tapping a $50 billion Treasury fund to provide guarantees
for the assets in the funds. The new Fed initiative is designed to bolster
the funds further.
Meanwhile, the Treasury Department announced Tuesday that it had selected two major accounting firms to help manage the government’s $700 billion rescue program for the financial system.
@13-17
clearly ive got to spend more time trolling here on fridays. ill pick it up.
@11 – please go back under your rock, or alternatively, type “Lahde” into the Keyword Search box above.
so tell me again, since the name LEH is still popping up, WHY were Bear, Fannie, Freddie, AIG and the rest of the world saved while they LEH die a horrible death? All to spite the Gorilla? Was it worth it?
I just want to know WHY?