Eric Adams, a partner in the Structured Finance and Securitization Practice, was quoted in an article in Risk on auctions for credit derivatives and the effects of recent events in the credit market on collateralized debt obligations (CDOs). Senior investors in those CDOs for which Lehman Brothers was the swap provider have fared better than some others. “It has been an opportunity for investors to terminate and liquidate the deal and – to the extent they were above the threshold where proceeds ran out in the priority of payments waterfall – be paid back at par. They were quite happy with that result,” says Mr. Adams. (“The Price Was Right,” November 2008)
