Financial Times FT.com

Subprime fall-out

Fear of further casualties whips up new storm

By Chris Hughes and Francesco Guerrera

Published: March 14 2008 01:33 | Last updated: March 14 2008 01:33

The credit crunch is entering a new phase, spreading to previously resilient areas of the financial system in what some observers say may be a necessary – but savagely painful – prelude to any eventual recovery.

The immediate casualties of this new chapter include hedge funds and other leveraged investors such as Carlyle Capital Corporation, the listed credit fund sponsored by Carlyle Group, the private equity firm.

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