FACTBOX - CDOs: ABS and other sundry collateral

(Reuters) - While there are many kinds of debt used as collateral, the
surge in subprime bonds as a percentage of total ABS has led to
their domination in many CDOs. Investors watching the prolonged
U.S. housing slump cause rising delinquencies and losses on the
ABS expect CDO values and ratings will soon be affected.




Losses at two Bear Stearns Cos. hedge funds after
bad bets on subprime came to a head in June as bank creditors
tried to extricate their investments in the fund. Most of the
funds' CDO assets put up for sale never found buyers at prices
acceptable to the banks, fueling speculation that ABS CDOs
would suffer widespread markdowns, sources said.


Read more at Reuters.com Bonds News

Canadian Stocks May Fall as Oil Prices Decline; Canadian Natural May Drop

(Bloomberg) -- Canadian stocks may fall for a second
day, led by energy producers including Canadian Natural Resources
Ltd., after crude oil prices slipped from a nine-month high and
Merrill Lynch & Co. downgraded the natural-gas company's stock.

Losses in the market may be limited as raw-materials producers
gain on speculation there will be more takeovers in the industry,
after a report that Alcan Inc. opened its books to potential
bidders. Copper prices rebounded from a drop yesterday and may also
support resource stocks.


Read more at Bloomberg Stocks News

UPDATE 1-Subprime mortgage bond index drops to record low

(Reuters) - Losses at a hedge fund run by top mortgage bond dealer Bear Stearns Cos. have captivated the industry as investors prepare for possible sales of low-rated assets from the fund. Bear Stearns last week sold about $4 billion of the fund's best bonds to cover losses, and today is meeting with creditors and private equity firm Blackstone Group to prevent its collapse, according to people familiar with the situation.




A government report on Tuesday showed U.S. housing starts set an annual pace of 1.474 million units in May, off from the 1.506 million rate in April. The National Association of Home Builders on Monday said its confidence index is at its lowest level in 16 years.


Read more at Reuters.com Bonds News

Oil steady after four-day slide; gasoline build eyed

(Reuters) - Losses in Brent crude and gasoline prices came as traders grew increasingly hopeful that motor fuel inventories would last out the peak-demand summer driving season.




Gasoline stocks are expected to have risen by 1.3 million barrels in the week preceding Monday's Memorial Day holiday, which marked the informal start of the summer, according to a Reuters poll ahead of data due out at 1530 GMT.


Read more at Reuters.com Hot Stocks News