“The investment bank said it has reduced its net exposure to U.S. subprime debt — defined as the potential loss if all of the debt’s value were wiped out — to $6 billion as of October 31 from $10.4 billion as of August 31.
It has also reduced its total exposure to asset-backed collateralized debt obligations and related subprime debt to $9.3 billion on October 31 from $12.3 billion on August 31.”
how did they reduce their exposure? isn’t the point of the “credit crisis” and the unknown valuation of cdo’s the fact that people aren’t buying them?
how did any of the other investment banks do it? or is “reduction of exposure” a euphemism for the write downs?
