Bank of America said it may not guarantee $38.1bn of Countrywide Financial’s debt after taking over the troubled US mortgage lender, fueling speculation that Countrywide’s bondholders face renewed risk of default, reports Bloomberg.  The second-biggest US bank said in regulatory filing there was no assurance that any such debt would be guaranteed,, adding that no decision has been reached. Investors have grown more optimistic the bank would back Countrywide $97.2bn of debt, and S&P said this week it may raise Countrywide’s rating to match BofA’s.

This entry was posted by Gwen Robinson on Friday, May 2nd, 2008 at 5:44 and is filed under Capital markets. Tagged with BofA, countrywide. Edit this entry.