The unwind of Franco-Belgian banking group Dexia could result in over $100 billion of ABS and MBS sales, market analysts said.

Moody’s Investors Service last week placed Dexia’s three main operating units on review for a downgrade on the back of concerns that the lender was struggling to fund itself. Moody's is also concerned that the bank does not  have sufficient collateral at its disposal, “potentially resulting in a further squeeze in its available liquidity reserves.” The bank’s shares are down 59 percent this year.

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