Traders used to hedge positions in corporate bonds by selling government bonds short. Now that these are in scarce supply, such strategies do not work. That sinking feeling. The names allege that Lloyd's committee duped them by concealing the extent of potential losses from claims related to asbestos-linked diseases. Big ticket' catastrophic risks, for example are lucrative in calm weather, but devastating when hurricanes happen.
Some observers see further evidence of Russian venality in the rescheduling deal.
At the time its price had fallen following the leak of a draft rescheduling terms. Under the current more generous deal, this category of debt is treated rather favourably, so the price has shot up. Nearly 5,500 lawsuits have piled up before the court in Mumbai since it was set up in July last year. It has only one judge to hear them all. You are a farmer or an energy company.