(Bloomberg) -- The pipeline of collateralized debt
obligations backed mainly by subprime mortgages is drying up and
may shut down amid concerns about the integrity of the market
following the near collapse of hedge funds run by Bear Stearns
Cos., JPMorgan Chase & Co. said.
The amount of high-grade, structured finance CDOs that are
being offered to investors has plunged to $3 billion, from
$20 billion a month ago, JPMorgan said in a report dated
yesterday. CDOs are pools of asset-backed securities, bonds or
corporate loans divided into securities with different credit
ratings and maturities to cater to investors' preferences.
Read more at Bloomberg Bonds News
obligations backed mainly by subprime mortgages is drying up and
may shut down amid concerns about the integrity of the market
following the near collapse of hedge funds run by Bear Stearns
Cos., JPMorgan Chase & Co. said.
The amount of high-grade, structured finance CDOs that are
being offered to investors has plunged to $3 billion, from
$20 billion a month ago, JPMorgan said in a report dated
yesterday. CDOs are pools of asset-backed securities, bonds or
corporate loans divided into securities with different credit
ratings and maturities to cater to investors' preferences.
Read more at Bloomberg Bonds News
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