November 10, 2008 - Credit Default Swaps: What Went Wrong with CDS
By Bill Conery, Businomics, Conerly Consulting, Yesterday I explained the basics of a credit default swap. Now let’s explain how they sunk AIG. The obvious risk of the CDS is that the original bond issuer (Barb in the simple explanation) cannot repay her debt. In AIG’s case, they did extensive […]