An attorney at Pillsbury Law predicts that the "opaque credit default swap market" is poised to spur a spike in litigation as CDS buyers seek to recoup losses and sellers seek to reduce or avoid payment obligations. Ed Flanders, head of Pillsbury Law's financial services litigation team, said CDS counterparties are scrambling to assess their exposure. "Once-profitable hedge funds are marshaling their cash assets to meet substantial CDS payment obligations," he said. Pillsbury and the Atlantic Legal Forum are hosting a conference on the future of CDS in New York on Nov. 6.
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