Friday, February 6, 2009

U.S. Sovereign CDS Rockets to 82 bp: And it's still very unclear who's buying this protection.

From Felix Salmon:

"
Extra Credit, Friday Edition

U.S. Sovereign CDS Rockets to 82 bp: And it's still very unclear who's buying this protection.

Deutsche Bank Fallen Trader Left Behind $1.8 Billion Hole: As suspected, it was on the CDS basis trade.

Harvard Endowment to Cut 25% of Staff: That's about 50 jobs.

A new hedge fund business model: Ideas for fixing the present flawed incentives.

‘Infrastructure more helpful than tax cuts’: The IMF says that government spending boosts and tax cuts are the only thing keeping the global economy from an outright contraction.

Somali Pirates Get Ransom and Leave Arms Freighter: And the NYT gets some great quotes from one of the pirates, Isse Mohammed."

Me:

I believe that the US might default on some of its debt in the future. That's why you might want some insurance, since you might lose some part of the principal of your bond. I'd say more, but, so far, I haven't gotten a damned thing for this extra credit. What gives?

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