AIG Fears More CDS Losses
ABCD
New York - American International Group (AIG) warned, the company could face unrealized credit default swap (CDS) losses with a notional value of $192.6 billion, principally in Europe. The fair value of its derivative liability for the portfolio was $393 million on March 31. A CDS is a swap contract in which the buyer of the CDS makes a series of payments to the seller and, in exchange, receives a payoff if a credit instrument - typically a bond or loan - fails to pay.