Three new signs of doom

Two from Bloomberg and one from the FT:

• 1. Auction-rate bond failures show no sign of abating after investors abandoned the market for variable-rate municipal securities. Almost 70% of the periodic auctions in the $330B failed this week as investment banks stopped buying the securities investors didn't want.
  
• 2. Carlyle Capital Corp., the publicly traded credit fund backed by private-equity firm Carlyle Group, said it received a notice of default after failing to meet a margin call yesterday. [...] The last few days have created a market environment where the repo counterparties’ margin prices for our AAA-rated U.S. government agency floating rate capped securities issued by Fannie Mae and Freddie Mac are not representative of the underlying recoverable value of these securities. Unfortunately, this disconnect has created instability and variability in our repo financing arrangements, Chief Executive Officer John Stomber said in the statement.
  
• 3. The recovery for Peleton's investors in its flagship fund is zero. Nada. Niente. Squat. Even LTCM's investors got 7 cents on the dollar...