Monday, July 2, 2007

Credit sell-off changes risk assessment of CDOs

(Reuters) - As rising interest rates have pushed up the cost of
corporate borrowing and overall risk, the distribution of risks
within CDO portfolios has changed.




The idiosyncratic risk of individual company default s
associated with mergers and leveraged buyouts is being replaced
with systemic risk, in which an increasing number of borrowers
are seen in danger of default.


Read more at Reuters.com Bonds News

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