Financial Times FT.com

Subprime fall-out

US homebuilders face growing bankruptcy threat

By Daniel Pimlott in New York

Published: January 29 2008 19:18 | Last updated: January 30 2008 02:21

The risk of bankruptcies among the big US homebuilders has risen sharply as the economy has weakened and an end to the housing slump remains distant.

Credit default swaps on homebuilders, which act as insurance on corporate debt, suggest some of the biggest are at risk of failing to keep up debt payments.

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