The fallout associated with subprime mortgages and highly leveraged structures such as CDOs continues to negatively impact markets. Last summer, we said the extent and severity of the fallout will depend on where exposures are concentrated and how those entities respond. Unfortunately, outsized exposures were found in the worst possible places in terms of broad market impact. Namely, at investment banks and the bond insurers (FGIC, MBIA, AMBAC, XLCA, etc.), the consequences of which are being felt in the far corners of the fixed income markets including the money markets, investment grade taxables, municipals, speculative grade bonds and the bank loan markets. The latest market experiencing disruptions and making headlines is the auction rate securities market.