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Wednesday, 1 February 2012

CDS insurance failure bankrupted MF Global

MF Global failed because a 50% bond "haircut" they suffered was deemed not to be a default, so their credit default swap (CDS) insurance against default did not deliver the promised cover, even though the issuers kept the premium.

 Apparent cover proved non existent, according to Jim Sinclair.

Listen from the 6m:40s mark in Ellis Martin's interview with Jim Sinclair.

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