anyone watch these???ginha, page-7

This is probably an over-simplification cause I'm in a hurry. GINHAs are a "synthetic CDO". They are "referenced" to the credit default swaps of a large number of world companies rated from AAA to CCC.Basically they have a sum of money amounting to $100 face value per security sitting in a JP Morgan Bank account. This money is insurance against "credit events" (ie defaults, bankruptcies) in the reference companies. As long as there is less than an agreed amount of credit events punters get the $100 face value on an agreed date in October 2011. The agreed amount of credit events that could occur for punters to get their money back (the "buffer") was about 10% of the total referenced entities when the product was launched around 2005 The buffer is still around 7% so there can be several credit events between now and October 2011 and punters will still get face value. If the buffer is exceeded between now and then punters will get zilch. I've noticed however that their published watchlist is now quite small.