What the Pros Say: Swap Jitters, Bottom Searches (at CNBC)

INTEREST RATES, RATES, FED, FEDERAL RESERVE, ECB, EUROPEAN CENTRAL BANK, CUTS Even though world stocks slumped to their lowest levels in five years Friday. Even as measures from the U.S., UK and other countries to fight the worst financial crisis in 80 years have failed to calm credit, money and stock markets, and quell investor fears. Lehman Credit Default Swap Jitters One key focus for the market is the pricing of Lehman Brothers credit default swaps. A possible scramble to cover obligations there has some market participants worried about a sell-off. "It's very clear from the net open interest that a lot of the market is already settled or bought the bonds ready to settle now," said Tim Backshall, Credit Derivatives Research. Bureaucratic Lag Experts said the market was aware that any government actions are some time off,... [read full story]