The credit-derivatives market is inefficient, writes Financial Times columnist John Authers. "The way the price of default swaps has ricocheted in the last few days appears to reflect a market in which there are only a few ultimate 'sellers' (at the big investment banks), who if they do not feel confident about their ability to hedge their exposures can simply mark prices up to unrealistic levels," Authers said. "This is much less efficient than the markets for stocks or bonds."

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