NEW YORK (MarketWatch) – U.S. stocks dramatically scaled back losses as investors breathed a sigh of relief over the settlement of Lehman Brothers credit default swaps “with no loss allocations imposed,” according to the Depository Trust & Clearing Corp. Can somebody explain this to me in plain English? What does the “no loss allocations imposed” mean here for those who bought LEH CDS?
I could be mistaken but I think it means that everyone who was supposed to pay actually came up with the cash. There is a ton of info on the Lehman CDS settlement at the site that ran the auction, www.creditfixings.com