- Prison Planet.com - https://www.prisonplanet.com -

CDO-Related Credit Default Swap Crisis on the Horizon?

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.