estimated CDO and subprime market loss

-- Merrill Lynch & Co., Citigroup Inc.and other banks that underwrote collateralized debt obligationslinked to U.S. mortgages may end up reporting $77 billion oflosses on their holdings, half of which they have alreadyrecognized, according to JPMorgan Chase & Co. --Losses marketwide on the so-called structured finance CDOs will reach about $260 billion, New York-based JPMorgan analystsled by Christopher Flanagan said in a report yesterday. Structuredfinance CDOs repackage asset-backed debt such as subprime-mortgagebonds and other CDOs into new securities with varying risks. --Bond insurers, which have ``taken few reserves,'' own CDOsthat have had $29 billion in losses, JPMorgan estimated. --Losses on all subprime mortgage assets may reach $300 billion to $400 billion worldwide, Deutsche Bank analysts said Nov. 12. Credit losses on subprime, Alt-A and second mortgages made in thepast three years will rise to $394 billion, excluding the effect of CDOs and credit-default swaps linked to the loans, UBS said. --Collateralized loan obligations, which repackage buyout loans and other high-yield company debt, may have lost $45 billion of value, the report said. The losses aren't ``credit-driven,'' thereport said.