June 12 (Bloomberg) -- Credit-default swaps traders settling contracts that protected against a General Motors Corp. default set a value of 12.5 cents on the dollar for the automaker’s bonds.
The price, the result of a second round of an auction by 13 dealers including Deutsche Bank AG and Morgan Stanley, means sellers of the swaps will pay 87.5 cents on the dollar to buyers of the protection, according to data from administrators Markit Group Ltd. and broker Creditex Group Inc.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aZGopZRF4xcg
Soros: Ban CDS as 'Instruments of Destruction'
But the potential damage that CDS could do was not limited to financial firms, Soros added. He pointed to the bankruptcy of North America's largest newsprint maker, AbitibiBowater Inc and the bankruptcy of General Motors.
"In both cases, some bondholders owned CDS and they stood to gain more by bankruptcy than by reorganisation." See the entire article at:
http://www.foxbusiness.com/story/markets/industries/finance/update--ban-cds-instruments-destruction---soros/
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment