WHO'S HOLDING THE C.D.S.'s (credit default swops)?

Discussion in 'Wall St. News' started by bgp, Dec 20, 2007.

  1. sjfan

    sjfan

    I do.

    I trade CDS for an institutional portfolio. We hold longs and we hold shorts. Banks, as counterparties, tend to have fairly balanced books. Though no one is a pure market maker (they all take prop positions), there's no major inbalance.

    The characteristics of holding an unlevered CDS is not different from the risk of holding the underlying bond.

    And no one calls it C.D.S.
     
    #11     Dec 21, 2007