(So where can I short the CDO of CDS created by the hedge -short sovereign CDS- against the 'full faith and credit' synthetics? - AM)
November 28, 2008
By KELLIE GERESSY
A fresh asset class is quickly carving a new niche for itself on Wall Street.
In just two days, Goldman Sachs Group Inc., Morgan Stanley and J.P. Morgan Chase & Co. sold a cumulative $17.25 billion of government-guaranteed bank bonds as part of the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program.
The program has opened the financing door for banks that were otherwise shut out from repaying or refinancing debt as a result of the credit crisis.