9/4/2009

Some industry insiders hailed the portfolio-compression cycle by TriOptima after the restructuring event for Thomson credit default swaps. However, they maintained that it is not a panacea to the complexity of triggering CDS contracts. "In our view, it was clear that the compression cycle could not be the ultimate solution to the complexity of triggering, which large institutions are faced with," said Tim Brunne, senior credit strategist at UniCredit. "To what extent the compression run was able to achieve such a goal is difficult to assess, as clearly none of the portfolios of the many different CDS counterparties is public."

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