" Lehman's cost of five-year credit protection for $10 million of bonds was at $87,500 Friday, compared with $100,000 a day earlier. Credit protection on Merrill Lynch & Co. (MER) and Goldman Sachs Group Inc. (GS), however, traded wider Friday at $87,500 a year, compared with around $80,000 a day earlier. "
So I get 5 years of protection for a stinking 100k?
The bonds kick out 500k a year interest.
Seems mighty cheap to me if I have this right. If thats the right figure and the protection is good, who cares if it ticks up 10 or 20 k, thats almost nothing.
Anyone know the scoop?
So I get 5 years of protection for a stinking 100k?
The bonds kick out 500k a year interest.
Seems mighty cheap to me if I have this right. If thats the right figure and the protection is good, who cares if it ticks up 10 or 20 k, thats almost nothing.
Anyone know the scoop?