Credit default swaps are being blamed for playing a role in two bankruptcy filings this week. Bankers and lawyers are concerned that some lenders to troubled companies such as newsprint producer AbitibiBowater – which filed for bankruptcy protection on Thursday – and mall owner General Growth Properties, which also filed for protection this week, stand to benefit from a default as they also hold default swaps, entitling them to payments in such events.

This entry was posted by Gwen Robinson on Friday, April 17th, 2009 at 4:50 and is filed under Capital markets. Tagged with AbitibiBowater, General Growth Properties. Edit this entry.