Financial Times FT.com

Liquidation of CDOs aids banks

By Aline van Duyn in New York

Published: September 21 2009 23:18 | Last updated: September 21 2009 23:18

Billions of dollars’ worth of the complex securities at the heart of the financial crisis are being liquidated, enabling banks, insurance companies and other investors to clear toxic assets from their books.

Market participants say the unwinding is occurring in the market for collateralised debt obligations (CDOs), complex securities backed by the payments on mortgages, corporate loans and other debt.

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