AIGFP - CDS - Collateral / Reserves

  • Blankfein - FCIC Interview
  • Cassano  
  • Dinallo
  • ISDA
  • 2008 0228 - FT (Financial Times) - Markets assess the costs of a monoline meltdown, Gillian Tett - [link]
    • But the monoline issue has raised anxiety about whether other counterparties in the CDS world, such as hedge funds, will be able to honour their contracts if corporate defaults rise.
      • While the International Swaps and Derivatives Association, the main trade body, vehemently insists this risk should be offset by the fact that most trades are backed by collateral, levels of investor unease are nevertheless rising.
  • So from my point of view, a failsafe mechanism built into this process that said that we did have adequate liquidity reserves, because we were able to meet the collateral calls, that in the severe scenario that you're outlining, the contracts allowed you to assert rights that would then compel the counterparty to come back to the table--  (p188)

--  Joe Cassano

2010 0630 - 2008 Financial Crisis and Derivatives, Day 1, AIG Executives - [PDF-376pVIDEO-CSPAN]