CDO exposure to Parmalat €660 million, says Moody's
A total of 65 collaterised debt obligation (CDO) contracts have “a direct exposure on Parmalat or its relevant subsidiaries”, said rating agency Moody’s Investors Service.
Parmalat last week narrowly avoided defaulting on a €150 million euro bond, missing the initial payment data. But fears remain that it will not be able to pay back the outstanding €7 billion of bonds.
And Parmalat added to concerns today when it revealed a €4 billion hole in its accounts, created when a document detailing offshore investments was declared to be false by Bank of America.
Credit default swaps for Parmalat were today bid at 64%.
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