Thursday, June 21, 2007

UPDATE 1-Bear Stearns CDO liquidation sparks contagion fears

(Reuters) - NEW YORK, June 21 - Even as Bear Stearns held out
hope of keeping two hedge funds from collapsing, worries over
their forced liquidation are reverberating through U.S.
financial markets, raising concern about broader contagion.




So far the risks seem contained, but the fallout may be
felt everywhere from leveraged buyouts, investment bank
earnings and sales of collateralized debt obligations. Those
securities have pushed sales of corporate and housing-related
debt to record highs in the past year.


Read more at Reuters.com Bonds News

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