Value Microcaps Free-For-All

[kipp440]

Does anyone know who is holding the bag on these CDS's? And when they have to cough it up?


"Sellers of credit-default protection on bankrupt Lehman Brothers Holdings Inc. will have to pay 91.375 cents on the dollar to settle the contracts, setting up the biggest-ever payout in the $55 trillion market. The auction may lead to payments of more than $270 billion, BNP Paribas SA strategist Andrea Cicione in London said.

More than 350 banks and investors signed up to settle credit-default swaps tied to Lehman. No one knows exactly who has what at stake because there's no central exchange or system for reporting trades."

Kipp