Financial Times FT.com

Collateralised debt obligations

By Paul J Davies

Published: July 21 2007 03:00 | Last updated: July 21 2007 03:00

With the crisis at the riskier end of the US mortgage market gathering pace and investor jitters spreading to much broader segments of the debt markets, attention is increasingly being focused on the complex structured bonds that helped to fund this lending boom.

The intensity of this focus will only sharpen following news that two of Bear Stearns Asset Management's hedge funds which were heavily exposed to something called collateralised debt obligations (CDOs) have essentially lost everything.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this