New auction to solve settlement woes

New angles

pg16-kevin-gif

The bankruptcy of Delphi Corporation, the world's largest auto-parts maker, has prompted another, more complex version of the auction used to cash-settle outstanding credit derivatives index and tranche trades. The latest protocol is seen as a step towards making cash settlement a standard item in future contracts.

"With each protocol we do and each auction we do to determine a cash price for bonds, there is an improvement. Each will be a basis for how index trades will be settled and eventu

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: