Global credit markets saw more volatility on Thursday, as hedge funds and
private equity groups dealt with margin calls and mortgage lenders struggled
with their financing.

Prices fell in markets for mortgage backed securities and other asset
backed debt. Credit default swap protection costs jumped for corporate debt,
and swap spreads widened to record levels.

The dramatic repricing of risk led mortgage and corporate debt issued by
U.S. mortage financiers Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) in
particular to extended steep declines, hitting some levels not seen in more
than 20 years.

Amid fresh signs that the mess in the U.S. mortgage market and the
resulting credit crunch are still getting worse, Wall Street's benchmark
Standard & Poor's 500 stock index tumbled 2.2 percent to its lowest closing
level in 18 months.
---------------------------------------------------------------------------->
>LATEST STORIES
3/06 Bankruptcy fears roil markets amid margin calls [ID:nN06329420]
3/06 Mortgage sales push swap spreads to record wide [ID:nN06456698]
3/06 Credit woes threaten large derivative unwinds [ID:nN06256162]
3/06 Municipal bond prices rise but scare far from over [ID:nN06621436]
3/06 US foreclosures at record, household wealth falls [ID:nN06217059]
3/06 Banks to propose reforms given credit crisis - IIF [ID:nN06242609]
3/06 ABX battered as mortgage market woes grow [ID:nN06593272]
3/06 Bond insurer CIFG loses top rating from Moody's [ID:nN06248455]
3/06 US Treasuries benefit from latest bout of credit fear [ID:nN06246135]
3/06 Thornburg off 51 pct on bankruptcy worry, defaults [ID:nN06212186]
3/06 US corporate bonds weaken as economic woes rise [ID:nN06563127]
3/06 Defaults spook investors, global stocks tumble [ID:nN06227326]
3/06 Bank watchdogs aim for tougher risk rules [ID:nN06219753]
3/06 Mortgage REITs plunge on Carlyle Capital troubles [ID:nN06419202]
>ANALYSES:
3/06 Credit crunch catches up with Goldman [ID:nN06312076]
3/06 US home price declines could make matters worse [ID:nN06239288]
3/06 Where have all the vulture subprime buyers gone ? [ID:nN06422029]
3/06 Battered muni bonds attract big crossover investors [ID:nN05479799]
2/25 FACTBOX - Rescue plans for troubled bond insurers [ID:nN25243603]
2/25 CHRONOLOGY-Bond insurers rating timeline [ID:nN26345251]
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