News, analysis and personal reflections on the markets & the financial sector

Saturday, September 20, 2008

Lehman collapse renews calls for derivative exchange

The bankruptcy of Lehman Bros. and the credit-rating downgrade of AIG renewed calls for a central clearinghouse for credit derivatives. The collapse of Lehman potentially leaves trading partners with billions in losses. "The fact that I can't tell you the notional value of derivatives contracts Lehman has written the day after a bankruptcy is a scary thing," said Brian Yelvington, a strategist at CreditSights.

more at http://www.bloomberg.com/apps/news?pid=20601087&sid=aKRxRwPBYCUg&refer=home

No comments: