(Bloomberg) -- The Wall Street money-machine known as
collateralized debt obligations is grinding to a halt, imperiling
$8.6 billion in annual underwriting fees and reducing credit for
everyone from buyout king Henry Kravis to homeowners.
Sales of the securities -- used to pool bonds, loans and
their derivatives into new debt -- dwindled to $9.1 billion in the
U.S. this month from $42 billion in all of June, analysts at New
York-based JPMorgan Chase & Co. said in a report yesterday. The
market, which was ``virtually shut'' earlier this month, is
showing ``signs of life,'' the bank said.
Read more at Bloomberg Exclusive News
collateralized debt obligations is grinding to a halt, imperiling
$8.6 billion in annual underwriting fees and reducing credit for
everyone from buyout king Henry Kravis to homeowners.
Sales of the securities -- used to pool bonds, loans and
their derivatives into new debt -- dwindled to $9.1 billion in the
U.S. this month from $42 billion in all of June, analysts at New
York-based JPMorgan Chase & Co. said in a report yesterday. The
market, which was ``virtually shut'' earlier this month, is
showing ``signs of life,'' the bank said.
Read more at Bloomberg Exclusive News
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