Friday, December 4. 2009
Posted by
Karl Denninger
Heh, I Thought Dubai Was a Non-Event?
Then what's this that the market is totally ignoring today? Creditors to refuse Dubai World deal http://www.guardian.co.uk/business/2...bai-world-deal
Creditors of Dubai World http://www.guardian.co.uk/business/dubai-world are expected to reject a standstill agreement proposed by the company, threatening to drag out negotiations over $26bn (£15bn) worth of the conglomerate's debt.
Advisers involved in the talks tonight said that the process could take months as more than 100 accountants, lawyers, bankers and other professionals descended on Dubai from London. "There won't be a standstill agreement," one said.
Eh, that could get fun. Refusal to stand-still means there's an immediate default, which means the CDS go boom.
Me thinks the weekend could be verrrry interesting, especially given the "hype and hope" trading we've got in the US markets today on the employment situation report.
Question for the Peanut Gallery:
Who holds the risk on those CDS, and how much?
SOURCE: http://market-ticker.denninger.net/a...Non-Event.html