The consequences of the collapse of Lehman Brothers continued to be felt last week, as counterparties attempted to settle billions of dollars in credit default swaps (CDS) with the failed US investment bank. The cost of settling CDS products traded without central exchanges or systems for reporting trades is only just being worked out. But you can bet it won’t be cheap.
Commentators are saying this will mark the biggest ever payout for a $55 trillion market. Where the losses will fall is unc