Hi folks, would like to consult with you on this subject http://www.creditfixings.com/information/affiliations/fixings/auctions/2009/genmtr/results.shtml is final price a kind of recovery rate of bonds?
The recovery rate is 100 - final price. There is also accrued interest through the date the event of default is declared.
You can use it for that - though there isn’t actually any data comparing ultimate (true) recovery established from a workout of the business’s assets and the price set at a CDS auction. Anecdotally, true recoveries are quite a bit higher.
it depends on if Goldman was net long or short.