JERLE...these are side bets on whether or not wamu's bonds,mortgage loans, etc. were going to default or survive. think of vegas and place bets on the horse races win, lose or draw. these are bets placed on the side by two or more parties, they did this with wamu and just about anything that was tied down. this has nothing to do with our current positions here, however these bets may have back fired on wamu if they were doing these side bets.....banks, hedge funds, investment banks [these have all died], are trying to figure out the 41 trillion dollar side bet game, who owes who, what, when and where. now what has happened is these wizards of wall street are finding out that some parties to side bets can't pay off...hence the 57 cents on the dollar payoff. remember lehman bros was 9 cents pay off on the dollar...hope this helps
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