Monday, 09 July 2007

Banks losing up to $52 bln over subprime

(Reuters) - The global financial system can absorb such losses, the analysts said, but the prospects for the subprime mortgage sector remains murky. The risks of CDO downgrades by rating agencies and further depreciation in the U.S. housing market could result in erosion in CDO values, according to the report.




Meanwhile, the analysts said European banks will suffer smaller subprime CDO losses than their U.S. counterparts.


Read more at Reuters.com Bonds News

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