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July 2010

Structured

Primus unwinds $300 million of CSOs
Friday, February 12, 2010

Credit derivative products company Primus Financial has offloaded another chunk of its portfolio of bespoke CSO tranches. It says it paid counterparties $35 million to tear up three contracts with a total notional of $300 million. This is the fourth such “repositioning” trade the company has carried out since August, as it seeks to reduce the risk of its credit portfolio.

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Comment by: Anonymous. Posted 5 months ago

I imagine "good" if the mark to market on the swaps is a lot greater than $35MM; possibly the same way that AMBAC shareholders feel when AMBAC rips up some of its swaps with its counterparties

Comment by: Anonymous. Posted 5 months ago

...and how do the shareholders feel about all this cash going out the door?

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