No swift resolution to turmoil of 2007

Those expecting a quick denouement to the disorder of 2007 will be disappointed as the headache is set to continue

Investors hoping for a swift resolution in early 2008 to the financial turmoil of 2007 were sorely disappointed in January as equities tumbled and credit spreads widened. Once again financial stocks dominated the news. Sub-prime mortgage-related losses continued to grow, even at the banks that had previously warned of big write-downs such as Citigroup and UBS. As a result, speculation remains that many others will have to own up to further losses. Some of January's bad news was good news for bondholders, most notably the capital raisings that banks have undertaken. Citigroup raised a furt...