Memorandum: Subprime and Credit Crisis Practice at RK&O
February 19, 2008
Distress in the U.S. subprime mortgage market is reverberating worldwide and has had an unprecedented impact on the global credit markets. The crisis has spread to the corporate credit markets and is straining Collateralized Debt Obligation vehicles ("CDOs") and Collateralized Loan Obligation vehicles ("CLOs") that have heavily invested in general corporate debt. In the enclosed memorandum, we discuss legal issues related to investment and arbitrage opportunities in the current market for investors in CDOs and CLOs, as well as related issues for audit committees and boards of directors of public companies.
