Funny explanation of the CDO/bond insurer/subprime mess.

Saudi Arabia’s rulers threatened to make it easier for terrorists to attack London unless corruption investigations into their arms deals were halted, according to court documents revealed yesterday.

Closed-end muni funds sold off sharply last week, along with closed-ends of all stripes (see The Trader on page M3 for more). The muni funds probably fell on investors’ assumption that the borrowing costs of leveraged funds would surge in tandem with ARS.