NEW YORK, Oct 22 (Reuters) - Net payments of only around $5.2 billion were made to settle an estimated $400 billion in credit default swaps on the debt of failed investment bank Lehman Brothers, The Depository Trust & Clearing Corporation (DTCC) said on Wednesday.
DTCC clears the majority of trades in the $55 trillion, privately-traded market. Concerns had escalated ahead of Tuesday’s deadline to settle the contracts that payments needed to settle losses would wreak new havoc on markets.
Analysts said these concerns were misplaced because large players in the market, such as dealers and some hedge funds, had both bought and sold protection, subsequently taking both gains and losses on Lehman’s default that offset each other. (Reporting by Karen Brettell; Editing by Theodore d’Afflisio)
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