Who Got AIGs $61b?
Submitted by RxN3ST1 on Thu, 03/05/2009 - 00:00
As I understand it, and I may be misguided, AIG lost their arse on Credit Default Swaps (CDS). This is where I may me off so please help if I am.
The CDS are insurance that people, like hedge fund managers, buy to protect them against securities that default. If that is correct then all the money AIG is losing on these is being paid to someone.
Who is getting the $61b?
Doesn’t this also mean that these securities that went bust still paid to folks who bought CDS?
Why do we not hear is getting all this money?
Any insight is appreciated,
rn
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Maybe this link can help
http://seekingalpha.com/article/99674-coming-soon-the-600-tr...