In 2005, Jane Bauer-Martin, the hedge fund manager, is considering what to do with a large investment fund in publicly traded bonds Delphi Corp, financially troubled auto parts supplier. Delphi is a key General Motor auto parts suppliers in and, as GM, he burdened by high pension and other obligations of retirees that threaten to push it into bankruptcy. Bauer-Martin is considering the use of various derivative credit (credit default swaps, credit linked notes, credit default swaps, indices, total return swaps, etc.) to hedge its position in the debt of Delphi, or to speculate on the future prices of bonds Delphi. "Hide
by Stuart C. Gilson, Victoria Ivashina, Sarah L. Abbott Source: Harvard Business School 20 pages. Publication Date: July 7, 2009. Prod. #: 210002-PDF-ENG
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