Georgia Gulf LCDS auction results in high recovery

Yesterday dealers took part in a credit event auction to settle loan-only credit derivative trades referencing Georgia Gulf Corporation. The final price was determined at a relatively high 83, after a dealers set an inside market midpoint of 81.125.

Only Barclays Bank and Morgan Stanley Senior Funding made physical settlement request bids, of $5 and $11 million respectively, with no dealers making offers. Seven dealers wholly filled $2 million size limit orders from inside markets, with Goldman Sachs Senior Funding partially filling a $3 million order at the final price.