Half of all CDOs of ABS failed

[girl gone mad]

Half of all CDOs of ABS failed

By Paul J Davies

Published: February 10 2009 19:38 | Last updated: February 10 2009 19:38

Almost half of all the complex credit products ever built out of slices of other securitised bonds have now defaulted, according to analysts, and the proportion rises to more than two-thirds among deals created at the peak of the cycle.

The defaults have affected more than $300bn worth of these collateralised debt obligations, which were built from bits of other asset backed securities (ABS) such as mortgage bonds, other CDOs and structured bonds, or derivatives of any of these, according to analysts at Wachovia and Morgan Stanley.

http://www.ft.com/cms/s/ddaa47f4-f79b-11dd-a284-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fddaa47f4-f79b-11dd-a284-000077b07658.html&_i_referer=http%3A%2F%2Fwww.nakedcapitalism.com%2F

:wow:

[Turbineguy]

1. Gee, I'd better call my investment advisors

to see if they have any new ideas!

After all, there's still a little money left in my retirement fund and somebody probably needs a bonus!