Agree. No earthquake though

Sales of CDOs reached $503 billion in 2006, a fivefold increase in three years. More than half of those issued last year were backed by subprime mortgages.(Bloomberg.com)

Total outstanding CDOs are about $1T, assuming about 25% of it is subprime, 2.5-5% at risk. (10-20% of subprime at risk of default).

A $50B problem, can Fed handle that?

ST, it bothers mkt.

所有跟帖： 

• problem is biiger than what looks like -ntrader- ♂ (366 bytes) () 06/22/2007 postreply 11:24:22

• Multiple of $50B, agree -marketreflections- ♂ (527 bytes) () 06/22/2007 postreply 11:48:05