Saturday, May 2, 2009

1) Derivatives are WMD, why do you participate in them? Will you add?

Our deriv do not take much of our capital. Mark to market risk



Received 4.9B premiums avg life 15 to 20 years, most are selling equity put options



Expects to lost on HY CDS he wrote, bakruptcies will be higher than he expected



Eric - this issue addresses writing puts on several equity indices. BRK are European style, they cannot be settled until maturity.