Home › Forums › Financial Markets/Economics › ABX indexes continue to crater › Bottom line being that many
Bottom line being that many hedgies stand to realize massive windfall CDS profits when the defaults occur and the insurance has to pay up.
The underlying assumption being that they can pay up. I am guessing that a fair number can’t.
On an unrelated note, this article is a nice primer on how debt creation all the way from mortgages to synthetic CDO’s occurs. Bullion vault article
Josh
