Subprime assets: Mark that risk

Where is all the toxic risk? That is one of the bigger questions to emerge from the collapse of two Bear Stearns hedge funds that invested in collateralised debt obligations. How that risk is distributed among banks, insurers and hedge funds will determine whether current market wobbles quickly pass - or turn into something more serious. The first mystery is that nobody knows how much risky stuff is out there. The global value of outstanding CDOs stands at between $1,500bn and $2,600bn - depend...