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CDO-Related Credit Default Swap Crisis on the Horizon?

Posted By admin On November 15, 2008 @ 12:45 am In Money Watch | Comments Disabled

George Washington’s Blog [1]
Saurday, Nov 15, 2008

According to the Financial Times [2]:

“[There is a] New wave of CDOs at risk of default .

Synthetic CDOs, the risky and complex debt products that are based on pools of corporate credit derivatives, are under increasing pressure after suffering a wave of default-related losses on top of general credit market deterioration.”

See also this article from Bloomberg [3].

There are huge volumes [4] of credit default swaps written against collateralized debt obligations (CDOs), the specifics of which have not been made public [5].

Rising CDO defaults could very well lead to massive new CDS problems, sparking off another round of company failures.


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URLs in this post:

[1] George Washington’s Blog : http://georgewashington2.blogspot.com/2008/11/new-wave-of-credit-default-swap.html

[2] Financial Times: http://www.ft.com/cms/s/0/ffda8156-b1c1-11dd-b97a-0000779fd18c.html

[3] Bloomberg: http://www.bloomberg.com/apps/news?pid=20601087&sid=a5x0jMKZf4yc&refer=home

[4] huge volumes: http://optionarmageddon.ml-implode.com/2008/11/06/dtcc-data-doesnt-disclose-real-dangers/

[5] have not been made public: http://georgewashington2.blogspot.com/2008/11/riskiest-40-of-credit-default-swaps.html

[6] Image: http://www.prisonplanet.tv/subscribe_holiday.html

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