Countrywide bondholders are concerned that Bank of America's failure to voice support for the mortgage lender's debt means BofA plans to structure the deal so it doesn't have to fully back the debt obligations. The situation would likely mean Countrywide's debt would not rise to the level of BofA bonds. "For somebody who holds Countrywide debt, you would love to see Bank of America assume all of the obligations of Countrywide," said Sean Jones, managing director of Egan-Jones Ratings Co. "But it's not clear that this is going to happen."

Related Summaries