In the recent Fannie Mae and Freddie Mac CDS auction the net position was bid – there were more buyers than sellers – which led to the perverse result that the final price for subordinated paper was higher than that for senior. In Lehman’s case there are US$138 billion senior bonds and US$17 billion subordinated bonds outstanding (but many of these are non-deliverable under the ISDA protocol) and CDS exposure widely reported as being around US$400 billion.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
