Items Tagged with 'Synthetic CDO'


  • Lehman Case Will Affect CDO Ratings, Says Fitch

    The outcome of a pair of lawsuits playing out in US and UK courtrooms could have a ratings affect on structured finance transaction that have material derivative exposure to US-based counterparties, Fitch Ratings said. The two related cases involve bankrupt Lehman Brothers and a dispute over subordinate swap termination payments to the rated noteholders of synthetic collateralized debt obligations (CDO).
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  • Fitch: CDOs Safe from CIT Fallout

    An impending bankruptcy or other "credit event" of besieged lender CIT Group could hurt the flow of goods between manufacturers and retailers, but according to Fitch Ratings, would have a minimal impact on investment-grade ratings of synthetic collateralized debt obligations (CDOs). Fitch announced it downgraded CIT to single-C Thursday, after the lender learned late Wednesday it would not receive a second bailout from the federal bailout.
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  • Credit Suisse: Our Traders Don't Crunch Numbers Very Well

    On the heels of an earnings announcement last week that had many --including HW -- singing the bank's praises for managing its exposure to the structured credit mess, Credit Suisse said Tuesday that "pricing errors" by its traders and continued poor performance in 2008 have led to an additional $2.85 billion in writedowns that will pull down net income for Q1 by $1 billion.
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