Carlyle Causing Today's World Stock and Bond Problems

Leverage on leverage, with the underlying securities being top-notch. Must be many, many hedge funds in this type of situation.

"Its portfolio is comprised entirely of securities issued by Fannie Mae (FNM) and Freddie Mac (FRE), which the fund has said effectively carry a government guarantee. The market value of these securities has fallen in recent weeks, however, as the credit crisis has slashed demand for all types of mortgage securities."

http://marketwatch.nytimes.com/custom/nyt-com/html-story.asp?guid=%7B16193889%2D7248%2D4C9E%2DAE91%2D7D6D61C6EB80%7D&siteid=NYT&dist=NYT

"The fund's counterparties include Bank of America (BAC), Bear Stearns (BSC), BNP Paribas (013110), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), J.P. Morgan Chase (JPM), UBS (UBS) and others."