Comments on: CreditSights: CDS put recoveries under pressure http://blogs.reuters.com/rolfe-winkler/2009/07/17/creditsights-cds-put-recoveries-under-pressure/ Option ARMageddon Tue, 14 Oct 2014 13:06:34 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: sangellone http://blogs.reuters.com/rolfe-winkler/2009/07/17/creditsights-cds-put-recoveries-under-pressure/comment-page-1/#comment-247 Fri, 17 Jul 2009 23:10:20 +0000 http://blogs.reuters.com/rolfe-winkler/?p=2676#comment-247 Given the slack in the economy I would argue its better for the economy in general to have fewer workouts and more liquidations. Why keep a Chrysler or Circuit City around when their competitors are hurting anyway. We have to rationalize our economy again. So, to this very small extent, I salute those creditors who hold CDS against their soured investments and opt to liquidate the debtor.

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By: Charlie Lefaux http://blogs.reuters.com/rolfe-winkler/2009/07/17/creditsights-cds-put-recoveries-under-pressure/comment-page-1/#comment-243 Fri, 17 Jul 2009 21:24:55 +0000 http://blogs.reuters.com/rolfe-winkler/?p=2676#comment-243 Caveat: I’m new to this.
If the issuer of the CDS made 100% the bondholder and took actual possession of the bond when the Company first went into bankruptcy, wouldn’t this solve the conflict of interest? The new holder of the bond (the former issuer of the CDS) would act in good faith in the reorganization process. What am I missing?

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