Default lines

As if the credit markets were not already seeing enough extreme price moves in early 2007, Fitch's plans to change its corporate CDO rating methodology may bring downgrades for two-thirds of these instruments and trigger further market volatility. By Kathleen Kearney

ar-mar-08-craigsaalman-gif

Any spark seems to trigger concern about a potential new problem in the credit world these days. On February 20, Credit Suisse - thought to be largely unscathed by subprime - said it would take nearly $3 billion in losses after mispricing its bond portfolio. Credit default swap (CDS) spreads on iTraxx indexes in Asia and elsewhere blew out to record levels. Market participants appeared to show little regard for macroeconomic developments or corporate fundamentals such as balance-sheet strength

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here