www.forbes.com...
LONDON, Nov 21 (Reuters) - Default losses in the roughly $600 billion synthetic collateralised debt obligation (CDO) market, after jumping from zero to $23 billion in a month, are likely to multiply as the economy slows.
Synthetic CDOs are bundles of between 100 and 150 credit default swaps (CDS) -- bets that individual companies will honour their debts -- that have been sliced into tranches based on degree of exposure to defaults.
As the credit crisis develops into a downturn, even buy-and-hold investors in the low risk AAA tranches of CDOs are reassessing their vulnerability to downgrades and defaults.
Recent high-profile failures led to seven CDS auctions from Oct. 6 to Nov. 6, resulting in realised losses in the synthetic CDO market of $23 billion out of $584 billion in total net notional value, Citigroup (nyse: C - news - people ) credit strategists calculated.
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Anyone have a link to the current Fitch's synthetic index list?
Here's some companies with high exposure in CDOs:
CIT Group
Radian Group
Macy's
MBIA Insurance Corp.
AIG
International Lease Finance Corp.
PMI Group
MGIC Investment Corp.
Ambac Assurance Corp.
Financial Security Assurance Inc.


')heir insurace which will decimate the economy but make the bank even moe powerful and rich.