Creditex and Markit, together with 13 credit derivative dealers held auctions in relation to the settlement of CDS contracts referencing Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).
Fannie Mae and Freddie Mac, shareholder-owned companies committed to the US housing market, were bailed by US government on September 7. During The Credit Event Auctions market participants were able to cash credit default swap (CDS) contracts submitting their orders electronically on the Creditex platform.
The determined final prices : Fannie Mae Senior 91.51%; Fannie Mae Subordinated 99.90%; Freddie Mac Senior 94.00%; Freddie Mac Subordinated 98.00%.
The calculated and verified results are available on www.creditfixings.com. Lehman Brothers Holdings Inc will be the next hit of The Credit Event Auction on 10 October.