Financial Times FT.com

BIS report heralds demise of key security behind subprime crisis

By Paul J Davies in London

Published: April 2 2008 03:00 | Last updated: April 2 2008 03:00

The financial instrument that was one of the biggest drivers of the explosive growth in mortgage-related debt markets faces near-certain extinction, according to the central bankers' bank.

The complex debt securities used to repackage the less attractive parts of asset-backed bonds are likely to disappear entirely as a result of the collapse of the credit market bubble, according to a report from the Bank for International Settlements.

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