| Headline: Insurers heavily exposed as Enron unwinds Source: Euromoney Date: January 2002 Author: Nick Evans
Insurance companies have moved strongly into the credit derivatives business in recent years – writing credit default swaps in particular – and multiline insurers have also moved into the credit enhancement business, which was formerly the preserve of monoline financial guarantee companies such as FSA, MBIA and Ambac. Enron’s messy collapse has triggered a process of unravelling and unwinding the company’s derivatives positions that could take several months – and also triggered at least some of the default and bankruptcy contracts in the derivatives markets. |
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