‘Brentwood Group’– Lehman CDS Payouts To Exceed $300bn.

Oct. 14, 2008 - PRLog -- Sources close to Brentwood Group suggest that sellers of CDS contracts covering the default of bonds issued by the now defunct Lehman Brothers have two weeks in which to settle their obligations.

Analysts at Brentwood Group are thought to believe that most sellers will have raised sufficient cash through forced selling of assets on equity and commodity markets but the auction process has exposed at least three large banks as being severely short of cash.

Brentwood Group are reportedly expecting similar anxiety in global markets as auctions for CDS contracts covering debt for a growing number of banking and corporate defaults as the turmoil deepens.

Policymakers are keen to bring the $62 trillion market in credit default swaps into a regulated exchange framework. Uncertainty about the ability of some sellers of the contracts has exacerbated the effect and duration of the credit crisis.