Citi CFO: CDOs' cash flow is fine despite writedowns

NEW YORK (Reuters) - The collateralized debt obligations that Citi owns are still generating cash flow as expected, even if their accounting value has declined, and so selling the securities now does not make sense, the company's chief financial officer said on Monday.

Speaking on a conference call, Citi CFO Gary Crittenden said that Citi had looked at hedging its CDO exposure in the third quarter, but at that point direct hedging was so expensive it was not economical.

(Reporting by Dan Wilchins)