Vat

[drew]

I see now, so am i right in thinking that you can afford 1 default on the nominal if 10 other people are paying they're premiums and nominals back. The shit hits the fan if that 10% increases to say 20-25% defaulting?

 

[Darth Vodka]

I see now, so am i right in thinking that you can afford 1 default on the nominal if 10 other people are paying they're premiums and nominals back. The shit hits the fan if that 10% increases to say 20-25% defaulting?

i made the prices up for the CDS...

you don't default on thte nominal...it's the coupon to worry about

shit can hit the fan whenever or whatever...just depends if you've legislated for it...you can make money from the shit hitting the fan if that's defaulting and your positions are long on defaulting

 

[Han]

Well done Darth, this topic is now what separates us from FT!

 

[Willlow]

To be fair this could easily be a thread on FT.

Darth does his best to explain it to everyone in simple terms and some people still dont understand it :icon_lol:

 

[lazzer]

I have no ****ing idea what he said :icon_lol:

 

[highland fox]

Quite how the Govrment have not contaced Webbo to get him to give the details of certain members on here is beyond me.We seem to have some of the greatest Economic minds on here,we'd get the sitation orted by dinnertime given the chance

 

[Darth Vodka]

i'm no expert on financial products...i just build databases and you need to know a bit about the products to do so

generally speaking..if you understand spread-betting it's a good way in to understanding financial products and wikipedia is a wonderful thing...

 

[lazzer]

i'm no expert on financial products...i just build databases and you need to know a bit about the products to do so

generally speaking..if you understand spread-betting it's a good way in to understanding financial products and wikipedia is a wonderful thing...

Plus it was on Spooks last week. :icon_lol:

 

[Steven]

http://news.bbc.co.uk/1/hi/business/7747757.stm Oh dear. :icon_eek: