August 9, 2007 (LPAC)--The Italian financial daily Il Sole-24 Ore has published a list of ten European Asset-Backed Securities (ABS) funds which are considered to be in the same situation as those just closed down by BNP Paribas in France. These funds have also been knocked out by the subprime, or CDO crisis. Some of their failures had already been known, some not.

"Paribas is not the only one who has stumbled on the perverse effect of the unbundling of the subprime-connected bonds. According to a reconstruction by Il Sole-24 Ore ... there are at least ten money market funds which have bought bonds with a fuse charged in highly dangerous U.S. morgages. Two of them have already been closed: the Franklin Trust, and the WestLb Mellon Compass Fund ABS," referring to Germany's Westdeutsches Landesbank. Rumors flew on financial markets this morning that Germany's central bank, the Bundesbank, was conducting an emergency rescue of the big Westdeutsches Landesbank as a whole; the Bundesbank denied these reports.

"But among the funds that have suffered losses, there is also the ABS department of Hsbc Trinkhaus, Hansainvest's C-Quadrat ABS, Oppenheim Pramerica Bonds ABS, and Capitalia Im Cash Plus. The latter ... has not invested in ABS, but is exposed in credit default swaps.... Such relevant losses on the monetary funds market are equivalent to 20-30% drops for equity funds," reported Il Sole 24 Ore.

Another failed fund listed is Deutsche Global Spectrum Euro Reserve C.