Credit Default Swaps in Today’s Markets
With today’s news regarding the Bear Stearns buyout, the markets were certainly volatile, with some large sell-offs for Lehman Brothers (LEH) and MF Global (MF). I was more interested in the performance of the credit default swaps that are held in the portfolios of Odyssey Re (ORH) and Fairfax Financial Limited (FFH). So far things are looking good and we should see both of these companies thrive as a result of the current turmoil.
Thanks to Barminov from the MSN BRK Board for posting these figures:

I would also suggest that you visit Nick Nejad’s blog, Rational Angle to see more information pertaining to the credit default swap portfolio held by FFH, and a nice graphic of their price movements.