Earlier this week, the riskiest tranches of debt measured by the ABX hit all-time lows of about 45 cents on the dollar. Although Flanagan is not expecting widespread subprime contagion, he sees subprime resolution taking longer. A spokesman for JPMorgan declined to make Flanagan available for additional comment. Downgrades from Moody's ( MCO ) and McGraw-Hill ( MHP ) subsidiary S&P have caused a wave of CDO securities to float back onto the marketplace. Pensions and insurance plans are allowed to own the higher-rated tranches of these pooled deals but are restricted from holding portions that fall below investment grade. So the recent downgrades have made them sellers. CDOs have been a big fee generator for banks and brokerages. Various parties made money by originating subprime mortgages, pooling these securities and selling them off as bonds to investors.