CDPC-credit derivatives product companies!

One of the major CDPCs presented large losses for the fourth quarter of 2007 last week. I was intreagued about these firms when I first heard about them two years ago. When spreads continued to fall, however, my initial excitement turned to a slight fear; a number of these firms must be on the wrong side of the bet and with these tiny spreads there will be a lot of action if spreads start to unwind. Now they have done that and now there are losses on the table. It will be interesting to see how the other CDPCs will perform. It is not the most important segment of the industry but still I think its performance (if made public) will give us valuable information.