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There is more still to do, unravelling devilishly complicated packages of debt and derivatives.
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CDO issuers divide the package of debt into tranches with varying degrees of risk.
Combined with a generous package of debt relief for African nations, it could save an entire generation.
A Calpine spokesman, Rick Barraza, said that reduced demand helped cancel the sale and that Calpine would probably offer a new package of debt by July.
If commercial banks are not pressed by western governments to accept a straightforward package of debt reduction, they will fight to collect fully, and, failing that, will press for debt-equity swaps and other inadequate approaches to debt relief.
Greek government officials said on Thursday that 97 percent of the investors holding its private sector bonds had agreed to the terms of a debt swap in which they would take a 75 percent loss in return for a new package of debt securities.
Greece's debt managers are also finalising a €135 billion package of debt swaps and rollovers for private-sector investors which would allow the country to delay the repayment of about one-third of its bills for up to 30 years.The scrambling might be enough to allow Greece to escape immediate default; but it will also make a more brutal restructuring in the future much harder.
Securitisation - the packaging of debt in complex instruments - was at the root of the 2008 financial crisis, as serious risks were hidden from investors.
They represent the starting point of inducting people into a life package of debt-servitude, which includes mortgage and car loans.
A hard, and probably a brutally hard recession has to be allowed to happen right now and the US needs to take its medicine for Greenspan's sins.. Putting off the day of reckoning with more re-packaging of debts as is the current 'master plan' of Paulson and Co. is only going to jeopardize the US dollar and possibly kill the US dollar off completely.
Federal regulators at the Office of the Comptroller of the Currency warned banks last month that the corporate debt market is overheating, making complex packages of corporate debt risky business in the current economy.
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Justyna Jupowicz-Kozak
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