$1.5 Trillion of Fannie and Freddie Default Swaps to be Unwound

Market watchers are warning of forced selling and diminished liquidity as credit default swaps (CDS) on Fannie Mae and Freddie Mac are unwound following the government bailout of the companies. It appears an estimated $1.47 trillion in contracts protecting against the default of Fannie and Freddie will need to be settled ...