Berkshire Hathaway Credit Default Swaps Rise to "Junk" Territory - Bloomberg
The price of Berkshire Hathaway credit-defaultswaps hit a record high today (Wednesday), going as high as 535 basispoints, before retreating to 515 basis points in the late afternoon.
Bloomberg reportsthe swaps, which are in effect insurance against a default by WarrenBuffett's holding company, are trading at levels "more typical ofjunk-rated companies" even though Berkshire retains its triple-A rating.
Thenews service says the swap prices may be rising due to worriesBerkshire will lose big on derivatives contracts tied to the long-termmoves of global equity indexes, high-yield corporate bonds andmunicipal debt.
Bloomberg quotes Buffett author Jeff Matthewsas saying, "There are two extremes on Berkshire, and one is that he’sgoing to make a lot of money on these things, just like he’s promised." The other extreme: "He could in fact suffer huge losses and it couldreally trigger some problems."
As part of a lengthy section on derivatives in this year's annual letter to shareholders,Buffett wrote that his expectation, "though it is far from a surething, is that we will do better than break even" on the contracts.
Buffetthas said Berkshire will not have to pay out any money on the contractsuntil well into the future, even if they lose value on paper in themeantime.
BRK目前还是AAA评级,不过他的债券CDS spread却是垃圾债券(junk bond)等级.
无论如何1年半前,市场集体投票银行违约,结果其中一家投资银行-lehman brothers真的是违约了. 本帖最后由 icy97 于 22-2-2013 12:00 PM 编辑