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Buyout Loans: Next In Line?

For all the talk about crashing mortgage backed securities, there has been little discussion of the increasingly shaky foundation of loans for leveraged buyouts. This subject hasn't gotten as much press as the mortgage issue, likely in part because it is a less populist story. And so, when an article on Goldman's massive hedge fund losses crosses the wires at Bloomberg, CLO writedowns get a single line, buried in the middle of the piece.

Moszkowski also estimated that Goldman will write down its leveraged loan portfolio by $1.3 billion in the quarter because of a drop in that market.

Still water runs deep?
Goldman to Post Loss in Fourth Quarter, Merrill Says [Bloomberg]