"The markets thought Lehman had big exposure to the US residential and commercial mortgages, hence they couldn't borrow, hence they went bust."
This is the sort of thing I mean when I say derivatives are hard to evaluate correctly. So yeah, Lehmans totally went bust because of their large amounts of trading in CDS.
This is the sort of thing I mean when I say derivatives are hard to evaluate correctly. So yeah, Lehmans totally went bust because of their large amounts of trading in CDS.