WaMu debt protection sellers may face 36 pct loss

WaMu debt protection sellers may face 36 pct loss

www.reuters.com

Around $80-to-$90 billion in volumes may be outstanding on WaMu's credit default swaps, based on the company's presence in former versions of the benchmark credit derivative index, Tim Backshall, chief strategist at Credit Derivatives Research said in a note on Wednesday.

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Today is WaMu's Credit Default Swap auction date. It seems like the sheer amount of money involved is less and the damage to protection sellers seem to be much less than what they dealt with in Lehman Bros. Either way, $80-90 billion is still a lot of money to switch hands. The amount of money involved is the reason why so many financial entities are liquidating everything they have. Thus driving down stock prices.

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