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Subprime Loss Figures Elusive

Estimates of losses on the $800 billion subprime market vary widely as the sector’s bubble seems ready to burst. Credit Suisse estimates losses at $52 billion while Deutsche Bank has put forth a figure of $90 billion, reports Bloomberg News.

Part of the problem lies in pricing the bonds. James Palmieri, who helps oversee $197 billion in investments at GE Asset Management, said that the company must “triangulate” the price of an asset-backed bond when it gets bids from traders. And while traders may not be able to agree on prices they can agree on the fact that prices are sinking. According to Merrill Lynch some securities have lost more than 50 cents on the dollar.

Click here to read the story from Bloomberg News

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