Subprime CDO Losses Could Reach $52 Billion


	Subprime CDO Losses Could Reach $52 Billion

Forbes

7-9-2007 8:19 AM

386 views

tags:

bonds, cdos, sub-prime mortgages

Forbes says:

This is a smaller number than the $90 billion Deutsche Bank estimated last month, but still a serious chunk of change. However, sub-prime still doesn't seem to pose a systemic threat.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/10895bfa-8d12-4299-83cd-9e7a47530614/34A8E409-D3FD-4C22-9592-D0AA6FAE21E9/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.bloomberg.com/apps/news?pid=20601087&sid=aPKIHSk5cS50&refer=home" href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aPKIHSk5cS50&refer=home" style="font-size: 11px;">www.bloomberg.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloomberg.com/apps/news?pid=20601087&sid=aPKIHSk5cS50&refer=home"><P>Losses from bonds secured by U.S.
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said.          </p> <P> Subprime defaults ``are clearly a huge problem'' for
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analysts led by Ivan Vatchkov in London wrote in a report. ``But
we do not think that they are a systemic one.''          </p> <P> Banks are unlikely to lose more than $10 billion on the CDOs
they hold because they typically keep the least risky portions of
the securities, the analysts said in the July 6 report. CDOs
package bonds and loans into varying pieces of risk, using their
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