Willa Bruckner Quoted in The Hedge Fund Law Report
In the Press
24 March 2008
Willa Bruckner was quoted in the March 24 issue of The Hedge Fund Law Report in an article titled, “Credit Default Swaps - Counterparty Risk in Credit Default Swaps: What Happens when a Broker-dealer Goes Bust?” The article discusses questions surrounding the credit default swaps (CDS) market in light of the continued credit market meltdown. Bruckner commented on the provision under bankruptcy code that exempts contracts such as swaps and repos from the automatic stay she said, "under SIPA [the Securities Investor Protection Act], the automatic stay only applies to collateral that's in the form of securities. Cash collateral is not covered by the automatic stay." She also added, "If the market moves and the CDS is in the money, then the [seller] will have to post additional collateral," said Bruckner.