Bennet Sedacca, Minyanville, 10.2.08
...insurance companies are in the middle of this mess...
The insurance company model isn't much different than banks and even individuals. Insurance companies match their liabilities (death, hurricanes, car accidents, surgery, etc.) against assets.
So they own corporates, CDO's, etc.
Their CDS is blowing out, their credit getting killed and the credit downgrades have begun. ...In the end, these are large bond portfolios with leverage, and oh by the way, loads of level 3 assets, in many cases at least as much as shareholder equity.
This is the next show in my opinion.