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Primus and Counterparty Terminate $1.3 Billion of Credit Swaps
October 05, 2009
Primus Guaranty, Ltd. (NYSE:PRS) today announced that its subsidiary, Primus Financial Products, LLC (“Primus Financial”), has terminated $1.3 billion notional principal of credit swaps with a significant counterparty. These swaps represent the counterparty’s entire portfolio of credit swaps with Primus Financial. Primus Financial paid $6.5 million to the counterparty, a significant discount to the market value of the portfolio, to terminate these swaps. Included in this portfolio were a small number of reference entities which Primus Financial concluded had a high risk profile, including certain financial guarantors.