80-1 leverage? Death penalty for even thinking about it. ========================== Three CPDO funds launched in 2006 by Dutch bank ABN Amro Holding NV have already been forced to liquidate after credit insurance costs spiked and they were downgraded by S&P. Other specialized funds, known as "credit derivative product companies," borrow as much as $80 for every dollar invested, according to a recent report from Citigroup Inc. One prominent such fund -- Theta Corp., a $10 billion fund run by London-based firm Gordian Knot -- had its credit rating slashed to Aa2 from AAA by Moody's earlier this month. Two other funds, Primus Financial Products and Athilon Capital Corp., have also had downgrades in recent weeks. A representative of Gordian Knot declined to comment. Primus and Athilon couldn't be reached for comment. If those funds are forced to exit from their investments, it "could wreak havoc on the marketplace," Citigroup analysts wrote in the report.