While similar to senior unsecured credit default swaps, these products include a fourth credit event – the deferral of a preferred or hybrid security coupon or a preferred stock dividend. Defining the deliverable security had been an area of contention, but under the new standards, preferred-level securities will be the only additional deliverable obligation. Previously, the deliverable was a preferred security or anything higher in the capital structure. The eight dealers are Bear Stearns, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers and Merrill Lynch.
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