About one year ago, following the September 2008 collapse of Lehman Brothers, it became evident that the spill over into the real economy was underway and it was going to be huge. While OCC and ONP may seem far removed from the goings on of Wall Street, the effect was front and center in the OTC swap market. Bids began to tumble lower, with many totally disappearing. Buyers, seeing their finished product orders starting to disappear, became completely reluctant to commit to swap prices that typically extended from six months to three years. Sellers were left with unsold swap offers, reluctant to stoop down to the low levels very reluctant buyers were willing to pay.
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