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.

Click here to read the New York Times article (subscription required)

  • 03 Jul 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%