主题：【原创】从次按危机到信贷危机（1） -- 子玉

The banking industry is facing huge losses as a

result of the sub-prime crisis. Already banks have

announced $60bn worth of losses as many of the

mortgage bonds backed by sub-prime mortgages

have fallen in value. The losses could be much

greater, as many banks have concealed their

holdings of sub-prime mortgages in exotic, offbalance

sheet instruments such as "structured

investment vehicles" or SIVs. Although the banks

say they do not own these SIVs, and therefore are

not liable for their losses, they may be forced to

cover any bad debts that they accrue.

Also suffering huge losses are the bondholders,

such as pension funds, who bought sub-prime

mortgage bonds. These have fallen sharply in value

in the last few months, and are now worth between

20% and 40% of their original value for most asset

classes, even those considered safe by the ratings

agencies. If the banks are forced to reveal their

losses based on current prices, they will be even

bigger. It is estimated that ultimately losses

suffered by financial institutions could be between

$220bn and $450bn, as the $1 trillion in sub-prime

mortgage bonds is revalued