February 28, 2008
One Business Week Is All It Took
I saw this article posted on the Chairman’s Deli.cio.us link roll. It seems it took only 6 to 7 days for the asset backed commercial mortgage paper market to start collapsing.
In normal markets, JPMorgan sells $25 billion of short-term IOUs for clients daily. “Within the span of six or seven business days, every single investor stopped buying asset-backed commercial paper tied to structured investment vehicles,” said John Kodweis, a managing director at the New York bank. [via Bloomberg]
Quite amazing when you think about it. No?
