S&P cuts ratings for Singapore banks - involves in debts instruments - CDOs

Given the losses at Merrill and other investment banks, S&P might lower its ratings for some other CDOs managed in Singapore. Raffles Place Funding - $1 billion CDO by UOB Asset Mgt. Singa Funding, a $1 billion CDO by OCBC unit Lion Capital Mgt. About 65% of the two CDOs' investments are linked to the US housing mortgage securities.

Last month, The Fed cut its target for the federal funds rate to 4.75 % from 5.25% - to limit the impact of a credit crunch on the US economy. But the deepening housing slump has prompted investors t expect an additional quarter-point cut in interest rates next week.

Earlier on 19 October 2007, we have report with headline :
Bleak House - Recession fears grow as US property slump worsens. It is quoted that the downturn is persisting & the peak of this storm will have impact on the economy in the fourth quarter of 2007 and first quarter of 2008.