Large dealer axe pushes down CDS recovery for Mexican builder

Auction for cash settlement of Urbi Desarrollos debt brings lowest recovery rates since June 2012 

TAGS: Default

Comment by: Anonymous. Posted 10 years ago [2013-06-08 18:52:51]

Something wrong with this picture? Deutsche has out-sized influence in the settlement price while it also initiated the court proceedings. It looks like Deutsche is the dominant lender and likely hedged itself with CDS. Perhaps there is nothing amiss here, but I would pay careful attention if I were a seller of CDS.