The International Swaps and Derivatives Association says the vast headline figures in the contracts are meaningless. Positions are off-setting. The actual risk is magnitudes lower.
What happens when one of the counterparties is insolvent, and can't pay? One of the big 3 monoline insurers, say? How are the positions off-set then?
53 posted on 03/23/2008 7:59:05 PM PDT by Travis McGee
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