Stock Market

Lehman CDO

Well, Lehman CDO’s did NOT all get settled yesterday. We’re witnessing the effects now. Here’s the size of the problem:

Investors are taking losses of up to 90 percent in the $1.2 trillion market for collateralized debt obligations tied to corporate credit as the failures of Lehman Brothers Holdings Inc. and Icelandic banks send shockwaves through the global financial system.

Source: Bloomberg