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RadioShack kept alive via US$25b credit-default swaps

The amount of swaps tied to the electronics retailer is 28 times its debt, more than any other US company

Among US non-financial companies, only casino operator Caesars Entertainment has more swaps tied to its debt than the 93-year-old RadioShack.

New York

RADIOSHACK Corp is finding an unlikely ally in its efforts to stay out of bankruptcy: credit derivatives traders who amassed more than US$25 billion of trades speculating how much longer it can keep paying its bills.

After a 60 per cent surge this year, the amount of...

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