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When the real default rate became known, as it inevitably did, the bonds collapsed in value.
When mortgage finance dried up in 2008, these collapsed in value.
In a separate move private equity firm Candover said its funds had collapsed in value by more than 50%.
Meanwhile, the assets that insurers have invested in to pay for those liabilities have collapsed in value.
They did so during an abysmal showing by business-to-consumer Internet stocks like eToys, CDNow and scores of others that had basked in Nasdaq's glow last year, but collapsed in value amid disappointing Christmas performances.
In the past year or so, collateralized debt obligations — complex debt securities, sometimes given sterling triple-A ratings by credit rating agencies — have collapsed in value as the underlying mortgages proved to be a lot riskier than computer models predicted.
Similar(40)
The assets they buy look like a sure thing until the moment they collapse in value.
But even a more benign result, in which the dollar remains under pressure but does not collapse in value, could still leave Wall Street on edge.
Unlike Lehman Brothers, it was not the sort of firm that took on too much debt to buy assets that could later collapse in value.
Hyperinflation involves price increases running out of control as a currency collapses in value.
In a similar fashion, every now and then a company collapses in value, sending its stock price through the floor and occasioning huge losses of principal for the owners of its junk bonds.
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