(Bloomberg) -- The risk of owning securities firms'
bonds surged as Bear Stearns Cos. informed its hedge-fund
investors of ``unprecedented declines'' in the value of the
highest-rated securities backed by subprime mortgages.
Lehman Brothers Holdings Inc. and Bear Stearns, both based
in New York, led the leap in risk premiums, which reached their
highest since November 2002, credit-default swaps show. An index
tied to subprime mortgage bonds, known as ABX, dropped to a
record for the third day, signaling a higher default risk.
Read more at Bloomberg Bonds News
bonds surged as Bear Stearns Cos. informed its hedge-fund
investors of ``unprecedented declines'' in the value of the
highest-rated securities backed by subprime mortgages.
Lehman Brothers Holdings Inc. and Bear Stearns, both based
in New York, led the leap in risk premiums, which reached their
highest since November 2002, credit-default swaps show. An index
tied to subprime mortgage bonds, known as ABX, dropped to a
record for the third day, signaling a higher default risk.
Read more at Bloomberg Bonds News
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