CDPCs under pressure



The stricken monoline sector has been brought to its knees by the chaos in the credit market. Soaring losses on monolines' structured finance portfolios have led to huge writedowns, the erosion of their capital base and, in some instances, the loss of their AAA ratings. Attention is now shifting to credit derivatives product companies (CDPCs), a sector that, at first glance, looks to have a similar business model to that of the monolines - selling protection on single-name credit default swaps (

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