As efforts to reach an agreement regarding debt refinance fail, the Carlyle Capital mortgage bond fund is approaching collapse. The affirmed that lenders will soon control most of the assets of this highly-leveraged mortgage bond fund. And, as Bloomberg reports, the Carlyle Capital mortgage bond fund is dragging the rest of the financial sector -- and the wider stock market -- down today:
Citigroup Inc. and Bank of America Corp. dropped after Carlyle's fund said lenders will ``promptly'' take over all of its remaining assets. American International Group Inc. slid as Morgan Stanley downgraded the world's largest insurer and predicted losses linked to credit-default swaps will be higher than the company's forecast.
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