(Reuters) - Hedge fund executive John Paulson of Paulson & Co. had
proposed that new language be introduced into the language of
credit default swaps on ABS that makes explicit in the
contracts that an attempt to manipulate CDS prices by buying
back loans would break securities laws.
Paulson's concern was that sellers of protection on
mortgages could buy delinquent loans underlying the contracts
to avoid triggering default payments and limit their losses.
For details, see [ID:nN07639106].
Read more at Reuters.com Bonds News
proposed that new language be introduced into the language of
credit default swaps on ABS that makes explicit in the
contracts that an attempt to manipulate CDS prices by buying
back loans would break securities laws.
Paulson's concern was that sellers of protection on
mortgages could buy delinquent loans underlying the contracts
to avoid triggering default payments and limit their losses.
For details, see [ID:nN07639106].
Read more at Reuters.com Bonds News
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