Hi! ISDA is to hold an auction to determine the recovery rate for cash settlement of fannie and freddie. normally the auction is based on one bond (or loan) per rankning ie one bond to determine the recovery for senior obligations and one for subordinated. in the case of fannie nad freddie ISDA has not chosen any particular bond, instead all deliverable obligations are to be used in the auction. the price of the deliverables range from well above par (120 or so) to very low (20 or so), how is the price to be deterimined in the auction given this wide range of deliverables? anyone who has understood this? please comment on it!