Merrill Lynch Drops Rating on Countrywide
SOURCE: Bloomberg
U.S. short-term Treasury securities rallied, led by the biggest gain in three-month bills since 1989, as investors sought shelter in the safest assets on concern that companies are having trouble raising funds.
Two-year notes rallied as traders stepped up bets the Federal Reserve will cut borrowing costs. Merrill Lynch & Co. lowered its rating on Countrywide Financial Corp., the biggest U.S. mortgage lender, to ``sell'' today and raised the possibility of bankruptcy.
The U.S. subprime mortgage crisis will cost credit investors about $150 billion in losses worldwide, Calyon, the investment banking unit of Credit Agricole SA, France's third-largest bank by market value, estimated today.
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U.S. short-term Treasury securities rallied, led by the biggest gain in three-month bills since 1989, as investors sought shelter in the safest assets on concern that companies are having trouble raising funds.
Two-year notes rallied as traders stepped up bets the Federal Reserve will cut borrowing costs. Merrill Lynch & Co. lowered its rating on Countrywide Financial Corp., the biggest U.S. mortgage lender, to ``sell'' today and raised the possibility of bankruptcy.
The U.S. subprime mortgage crisis will cost credit investors about $150 billion in losses worldwide, Calyon, the investment banking unit of Credit Agricole SA, France's third-largest bank by market value, estimated today.
Read full report »
