At the end of 2007, Fairfax's CDS portfolio held the following names:
Ace Ina Holdings
Swiss Re America
Bank of America
Capital One Bank/Financial
Of these, the ones in bold were initiated/added to during the year.
Last year, I wondered why so many property and casualty insurers were included in their CDS portfolio. The reason appears more clear now, as insurer investment losses are set to overtake those of Hurricane Katrina. These has caused the credit protection costs of many of these insurers to soar: