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AIG typed credit default swaps towards over $five-hundred billion in the assets

AIG typed credit default swaps towards over $five-hundred billion in the assets

Nevertheless is actually the fresh new $78 billion when you look at the borrowing standard swaps to your multi-business collateralized debt obligations-a security backed by debt repayments regarding residential and commercial mortgages, domestic collateral funds, and more-you to turned out very problematic. AIG’s difficulties have been exacerbated by the simple fact that these people were you to-ways wagers. Continue reading AIG typed credit default swaps towards over $five-hundred billion in the assets