Financial Times FT.com

Auction-rate securities ‘implied support’

By Joanna Chung in New York

Published: June 29 2008 23:34 | Last updated: June 29 2008 23:34

The vast majority of investors in some of the “safest” bonds hit by the credit squeeze were led to believe they would be bailed out in case of trouble, according to research to be published Monday.

More than 85 per cent of companies that invested in the collapsed market for auction-rate securities thought Wall Street banks would provide support during crises, research shows.

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