Sowood loses more than $1 billion in July - Facing margin calls, hedge fund firm sells portfolio to Citadel

"Sowood is the latest hedge fund firm to be hit by credit market turmoil. Most managers with such losses have been knocked by trouble in the subprime mortgage market. However, Sowood told clients on Monday that a sharp widening of spreads in the corporate loan market last week triggered its problems." -- Can you imagine when prime debt issues start hitting other secondary market entities?