Thursday, March 6, 2008

Credit Cancer Spreading…

Carlyle Fund Gets Default Notice After Margin Calls (Update8)

Carlyle Group's publicly traded mortgage bond fund failed to pay margin calls, prompting creditors to seek immediate repayment, as the burning subprime mortgage market scorches investors in even the highest-rated debt. Other juicy quotes include: "1987, Carlyle expanded its mortgage investments last year, selling $300 million of shares in Carlyle Capital. The fund used loans to buy about $22 billion of AAA rated mortgage debt" "Widening Spreads : The agency mortgage-bond market has about $4.5 trillion of securities" "I don't think anyone has a recollection of a total disappearance in liquidity. I just cannot remember a time when for six months there are billion of dollars worth of assets out there for which there is just no market.''

Posted by layers @ 07:33 PM (418 views)
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