Trading in CDOs is just not happening. According to Bloomberg "buying and selling of collateralized debt obligations based on mortgage bonds, high-yield loans or preferred shares has ground to a near-halt."

We have noted before how this CDO market started looking like a build-up to what may be yet another Resolution Trust Corp.

If the securities cannot be valued through pricing based on trading patterns, could banks have to take more write-off? Yes.

Douglas A. McIntyre