Tuesday, July 24, 2007

Number Of The Day....CDO´s

From the "golden era" that Henry Kravis just praised to "virtual shut" within a few weeks.... And this with defaults from bonds close to all time lows.....

Von der "goldenen Ära" die Henry Kravis angepreisen hat zum totalen Stillstand binnen weniger Wochen....Und das zu Zeiten wo zur gleichen Zeit die Ausfallraten immer noch nahe null sind......

July 24 (Bloomberg) -- The Wall Street money-machine known as collateralized debt obligations is grinding to a halt, imperiling $8.6 billion in annual underwriting fees and reducing credit for everyone from buyout king Henry Kravis to homeowners.
Sales of the securities -- used to pool bonds, loans and their derivatives into new debt -- dwindled to $3.7 billion in the U.S. this month from $42 billion in June, analysts at New York-based JPMorgan Chase & Co. said yesterday.

The market is ``virtually shut,'' the bank said in a July 13 report.

Buyout groups rely on CDOs for 60 percent of the loans to finance U.S. acquisitions, according to JPMorgan.

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2 Comments:

Anonymous Anonymous said...

I guess you can see this as proof that in the risk v reward calculation made every day in the credit/debt marketplace, if the perceived risk is too high, then no rate of return (reward) will be deemed sufficient.

eh

6:00 AM  
Blogger jmf said...

Moin,

what happened to the word "contained"...

Havn´t heard this for 2 days ....almost an eternity :-)

7:03 AM  

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