Wednesday, July 18, 2007

Chanos of Kynikos Says `Contagion' Spreading in Market for Mortgage Bonds

(Bloomberg) -- Defaults on home loans to risky
borrowers are spurring a ``contagion'' of losses among the bonds
they back and the risk is spreading to other securities, said
James Chanos, president of hedge fund Kynikos Associates.

``There's a lot more to come,'' Chanos, who oversees $4
billion and specializes in short sales, said today in an
interview. ``What we're seeing already is a spreading of the
contagion.''


Read more at Bloomberg Stocks News

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