The giant market for securities backed by US subprime mortgages was thrown into turmoil on Wednesday as lenders struggled to sell more than $1bn of assets seized from two Bear Stearns hedge funds that suffered heavy losses on subprime bets. The complex securities being auctioned are rarely traded and early attempts to sell the collateral met with mixed results. The sales began on Tuesday and among assets being sold by lenders Merrill Lynch and Deutsche Bank were CDO investments. However, the Wall Street Journal reports that JPMorgan pulled back from auctioning off its assets after reaching agreement with Bear to eliminate its exposure, reports the Wall Street Journal.

This entry was posted by Gwen Robinson on Thursday, June 21st, 2007 at 5:48 and is filed under Capital markets. Tagged with bear stearns, deutsche bank, jpmorgan, merrill lynch. Edit this entry.