Category Credit crisis

Some money market funds are wobbling or getting emergency financing to prop them up to the $1 par level. Yup, you got it. They were investing in SIVs, trying to goose the return a bit. Now the funds are leaking,…

Bond rating agency Fitch just downgraded $37.2 billion of toxic glop CDOs from highest rank AAA to junk, the lowest grade. This led a commenter to say Collateralized Debt Obligations should be renamed Cannonballized Debt Obligations. In related news, E-Trade…

General Motors wrote off $39 billion last week in tax credits against future earnings. Since there is no deadline on when the tax credit could be used, then the jarring implication is that GM never expects to make that much…

It may well be more than that. Welcome to the collapse of the worldwide credit bubble. Losses of the order of $500 billion are actually quite reasonable and likely once you account for all the losses from subprime, near-prime, prime…

Yes. CMBX. As in Commercial Mortgage Backed Credit Default Swaps. They’re currently going south big time, signaling that commercial real estate itself is in trouble. Wait, wasn’t subprime residential real estate just supposed to be a little blip and not…