Commutations Increase Liquidation Risk For Mezz Investors

14 Jun 2010

More commutations by monolines could increase the number of liquidations for collateralized debt obligations of asset-backed securities, a negative for mezzanine investors.

--Olivia Thetgyi

More commutations by monolines could increase the number of liquidations for collateralized debt obligations of asset-backed securities, a negative for mezzanine investors. This would be the case in the $16.4 billion of commutations Ambac recently announced, as well as with commutations by other monolines, according to analysts ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial