$3 billion of CPDOs at risk of unwinding

Barclays Capital estimates $3 billion of constant proportion debt obligations are at imminent risk of being unwound. The CPDOs in question were issued between July and September, and have exposures to 45-50 financial names. Barclays Capital says these CPDOs have suffered significant mark-to-market losses and could unwind if spreads widen more than five basis points. This could have a knock-on effect, with spreads widening on the underlying 10-year credit default swap contracts, according to a

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