According to sources, Akeman Capital estimated writedowns for collateralized debt obligations and subprime related losses have already totalled $150 billion. Sources say that Akeman Capital researchers estimate that the figure could rise by a further $120 billion for CDOs, $50 billion for structured investment vehicles, $18 billion for commercial mortgage-backed securities and $15 billion for leveraged buyouts. This estimate takes into account that risks are continuing to rise while spreading and liquidity conditions are still considered to be unstable, a spokesperson for Akeman Capital apparently stated.
Sources revealed that Akeman Capital had previously commented on the rise of defaults on subprime mortgages in the U.S. stating that this had led to the collapse of global credit markets 2007.
The Akeman Capital spokesperson apparently added that the cash shortage, which followed the credit market collapse, was largely responsible for the large writedowns by banks in the second half of 2007.
