Krugman Equates CDO Market To ‘90s Stock Bubble

  • 03 Jul 2007
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In a recent column in The New York Times’ opinion section, economist Paul Krugman parallels the current state of the collateralized debt obligation market with Enron-style accounting practices of the 1990’s stock bubble. Krugman argues that the ratings agencies, Standard & Poor’s, Moody’s Investors Service and Fitch Ratings have been approving risky CDOs with high ratings even when the bonds don’t deserve such ratings.

Krugman says that the price of a basket of loans within the $800 billion subprime mortgage market has lost about 40% of its value since January. He also estimates that losses in the CDO market may range between $125-250 billion and cites some analysts as believing that a wave of problems in the CDO market will further dampen housing prices.

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  • 03 Jul 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 41.30
2 Rabobank 35.35
3 Morgan Stanley 11.45
4 BNP Paribas 5.95
4 Credit Agricole 5.95

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%