Reading 53 is like a Greek tragedy

CFA Level II Portfolio Management
#1

Written in mid-2007, just before the s*** hit the fan.

It contains some quaint rebuttals to CDS criticisms starting on p. 347. (Hindsight is 20/20, of course.)

I’m curious as to what has happened to the CDS market since. Wikipedia has an interesting article, including a current chart of prices of sovereign CDSs.

#2

CDS market is not as active, but very much alive and well. Structured Finance has made a LOT of money for WS… it’s not going anywhere.

AIG packaged like $600-700 mil of receivables and issued the ABS just a few weeks ago.

#3

derivatives are reasons for tragedies