Alea | ABCP for Auction-Rate Rescue ? The U.S. Treasury Department is working with Goldman Sachs and Lehman Brothers to create an outlet for billions of dollars of illiquid student-loan securities.

Bloomberg.com: Worldwide The implied ratings frequently show that swap traders think debt is in more danger of defaulting than Moody’s credit ratings signify. And here’s the kicker: The swaps traders are usually right.

Mish’s Global Economic Trend Analysis: Liquidity Issues Hit Hedge Funds The Financial Times is reporting Liquidity levels hit funds of hedge funds.

Bloomberg.com: Bonds Deutsche Bank AG’s asset management business may join other firms in repackaging their home-loan bonds into new securities without creating collateralized debt obligations, which are being shunned by investors.

Investment Executive : Newly merged IIROC ready to open shop
The Investment Industry Regulatory Organization of Canada (IIROC) is set to begin operations on June 1.