Leveraged loan writedowns coming

Do not be surprised if more banks decide to write off hung loans in the fourth quarter. That's the word from Bank of America Credit analysts. We may even see some action from Goldman Sachs, which has fared well in avoiding CDO writedowns, notes Financial News Online. The analysts figure that Citigroup and Goldman Sachs had $43 billion and $36 billion of exposure as of the fourth quarter. An assumption that they would need to writedown about 10 percent of these amounts is not unreasonable. However, the banks may have hedged against losses in unsalable high-yield securities, including leveraged loans. We'll see.   

For more:
- here's the article