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UPDATE: More Companies Seen Reneging On Bonds As Credit, Economy Squeeze

Appeared on January 23, 2008

"There is great uncertainty about the impact of those [bond] defaults in a world of structured finance and credit-default swaps," said Joseph Mason, a professor of finance at Drexel University. "Where credit default swaps were issued for speculation, losses in the sector will magnify - rather than offset - losses from any given default," he said in emailed comments.