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U.K. Retailer’s Struggle Sparks Warning on `Flawed’ Derivatives
LONDON (Capital Markets in Africa) – The $11 trillion market for credit derivatives is coming under renewed criticism in Europe because of concerns that one of the region’s riskiest companies is heading for a debt restructuring that could expose shortcomings in default insurance. Hedge fund Sona Asset Management and JPMorgan Chase & Co. have flagged risks from a possible restructuring by U.K. retailer New Look because of flaws in the way credit-default swaps are designed to compensate for losses. The…
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