Carlyle defaults on $17bn mortgage debt 14 March 2008 5:28PM Ian Rogers In possibly the largest default yet in the ballooning credit crunch a listed affiliate of the private equity firm Carlyle Group has failed to meet margin calls on US$16.6 billion of debt.Carlyle Capital Corporation said that its banks were likely to take possession of its remaining assets, which are largely mortgage-backed securities whose market valuations continue to slide.CCC said it attempted to negotiate sustainable funding terms and also said Carlyle Capital was prepared to provide "substantial additional capital" but obviously not enough.