Those parts of the Master Agreement that suddenly have "bite" to the tune of several billions ...
ISDA folks appear to be working overtime - there was an extradordinary session on the weekend to auction some of Lehman's derivative's risks.
My question is, who is left who bought any of the risks? Goldman? Morgan Stanley? Were there any bids?
As for seizing collateral, anyone want to guess how many cents on the dollar the collateral available amounts to on a pro-rata basis, even from AAA-rated subsidiaries?
Anyway, they leave the impression that the markets for this stuff are going to clear, without knock-on consequences.
That'd be bullish news, IF true.
Tuesday, September 16, 2008
ISDA Juggles the Balls
