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Crisis sparks CDO asset sales as contagion spreads

Vehicles that invest in complex mortgage-backed securities have started offloading billions of dollars in assets after the value of their portfolios fell to levels that triggered a liquidation clause.

Troubles with these vehicles, known as market value collateralised debt obligations, which package together bonds and divide them into different levels of risk, is the latest sign of contagion from the US sub-prime mortgages debacle.

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