auctions

What is Behind the Curtain - Lehman CDS Auction Gives a Hint

Wizard of Oz Behind the Curtain

 

The Final Price for Lehman Brothers CDS auction is 8.625. That's 8.625% on the dollar and is much less than what was expected, 9.75.

 

That means CDS Lehman sellers have to pony up 91.375 cents on the dollar. That's the Biggest Payout Ever and will assuredly result in further write downs and losses for these sellers.