Headlines...
- Thread starter effenheimer_IHB
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NEW -> Contingent Buyer Assistance Program
EvaLSeraphim_IHB
New member
This article from the Washington Post is interesting. What caught my eye:
As part of the new Bear Stearns deal [of $10 per share], the Fed's role was also renegotiated. The central bank originally had agreed to put public dollars on the line to guarantee $30 billion of risky mortgages owned by Bear Stearns. In the reworked deal, J.P. Morgan agreed to cover the first $1 billion in losses if the value of those securities falls, with the Fed responsible for any losses beyond that.
Emphasis mine. As I read it (and who is to say that the reporter correctly summarized), John and Jane Q. Public used to have an exposure limit of $30B, but now have an unlimited exposure. Is that correct?
Oh wait, maybe not. Later in the story:
The Fed worked out an agreement that would allow it to keep all the profit if it sells Bear's risky assets for more than $30 billion. And the concession by J.P. Morgan to take on the first $1 billion in losses significantly reduces the risk that the central bank will take a loss because Fed leaders expect the portfolio's ultimate sale to be within a few billion dollars of the $30 billion estimate.
So, yes, the JQ Publics are probably on the hook for some of this.
As part of the new Bear Stearns deal [of $10 per share], the Fed's role was also renegotiated. The central bank originally had agreed to put public dollars on the line to guarantee $30 billion of risky mortgages owned by Bear Stearns. In the reworked deal, J.P. Morgan agreed to cover the first $1 billion in losses if the value of those securities falls, with the Fed responsible for any losses beyond that.
Emphasis mine. As I read it (and who is to say that the reporter correctly summarized), John and Jane Q. Public used to have an exposure limit of $30B, but now have an unlimited exposure. Is that correct?
Oh wait, maybe not. Later in the story:
The Fed worked out an agreement that would allow it to keep all the profit if it sells Bear's risky assets for more than $30 billion. And the concession by J.P. Morgan to take on the first $1 billion in losses significantly reduces the risk that the central bank will take a loss because Fed leaders expect the portfolio's ultimate sale to be within a few billion dollars of the $30 billion estimate.
So, yes, the JQ Publics are probably on the hook for some of this.
lawyerliz_IHB
New member
Home prices are down year over year 20% in Miami-Dade. My landlord in Miami Dade thinks some of his houses are down 50% from the peak.
graphrix_IHB
New member
Deutsche may take more hits on $55.7 bln leveraged loan book
By Steve Goldstein
Last update: 3:44 a.m. EDT March 26, 2008
LONDON (MarketWatch) -- Deutsche Bank disclosed in its 20-F filing key exposures as of the end of the year. Its leveraged finance exposure was 36.21 billion euros ($55.74 billion) at the end of the year after net write-offs of 759 million euros, and the bank said "it is likely that our leverage lending commitments will require further write-downs if market conditions fail to improve." It had a total net subprime CDO exposure of 1.19 billion euros, another 53 million euros of subprime ABS CDOs held available for sale, other U.S. mortgage exposure of 3.01 billion euros and monoline exposure of 1.1 billion euros. Deutsche Bank also said that CEO Josef Ackermann received 13.98 million euros last year, up from 13.21 million euros.
By Steve Goldstein
Last update: 3:44 a.m. EDT March 26, 2008
LONDON (MarketWatch) -- Deutsche Bank disclosed in its 20-F filing key exposures as of the end of the year. Its leveraged finance exposure was 36.21 billion euros ($55.74 billion) at the end of the year after net write-offs of 759 million euros, and the bank said "it is likely that our leverage lending commitments will require further write-downs if market conditions fail to improve." It had a total net subprime CDO exposure of 1.19 billion euros, another 53 million euros of subprime ABS CDOs held available for sale, other U.S. mortgage exposure of 3.01 billion euros and monoline exposure of 1.1 billion euros. Deutsche Bank also said that CEO Josef Ackermann received 13.98 million euros last year, up from 13.21 million euros.
graphrix_IHB
New member
The ECB is is giving a major speech right now, and the € is shooting up big, and the $ is taking a shit.
Oh, the futures are not liking this.
Hat tip Barry for the latest Economist mag links...
Here's the list of related stories:
Comparing banking crises past and present
Mar 19th 2008
Central banks diverge (A dangerous divergence)
Mar 19th 2008
Where finance went wrong
Mar 19th 2008
How to invest in a panic
Mar 19th 2008
Caveat counterparty
Mar 19th 2008
A lifeline of sorts to Wall Street
Mar 19th 2008
Flipside of the falling dollar
Mar 19th 2008
China's stockmarket swoons
Mar 19th 2008
The fallout at Bear Stearns
Mar 19th 2008
A wobble in commodities
Mar 19th 2008
The $2 bail-out; Sore heads
Mar 19th 2008
Apocalypse now? (Investment havens in a time of panic)
Mar 19th 2008
>
Oh, the futures are not liking this.
Hat tip Barry for the latest Economist mag links...
Here's the list of related stories:
Comparing banking crises past and present
Mar 19th 2008
Central banks diverge (A dangerous divergence)
Mar 19th 2008
Where finance went wrong
Mar 19th 2008
How to invest in a panic
Mar 19th 2008
Caveat counterparty
Mar 19th 2008
A lifeline of sorts to Wall Street
Mar 19th 2008
Flipside of the falling dollar
Mar 19th 2008
China's stockmarket swoons
Mar 19th 2008
The fallout at Bear Stearns
Mar 19th 2008
A wobble in commodities
Mar 19th 2008
The $2 bail-out; Sore heads
Mar 19th 2008
Apocalypse now? (Investment havens in a time of panic)
Mar 19th 2008
>
Anonymous_IHB
New member
New-Home Sales in U.S. Fall to Lowest in 13 Years (Correct)
http://www.bloomberg.com/apps/news?pid=20601068&sid=aQHCmi.HntEw&refer=home
http://www.bloomberg.com/apps/news?pid=20601068&sid=aQHCmi.HntEw&refer=home
Anonymous_IHB
New member
Remarks by Secretary Henry M. Paulson, Jr
on Current Financial and Housing Markets
at the US Chamber of Commerce
http://www.treas.gov/press/releases/hp887.htm
Housing and Mortgage Markets The housing downturn and the surrounding uncertainty are significantly impacting our financial institutions and capital markets. However, we should not lose sight of the fact that this downturn was precipitated by unsustainable home price appreciation which was particularly pronounced in a relatively few regions. A correction was inevitable and the sooner we work through it, with a minimum of disorder, the sooner we will see home values stabilize, more buyers return to the housing market, and housing will again contribute to economic growth. Having stability in housing markets will in turn contribute to better conditions in credit markets for mortgage-backed securities.
Data releases every month create headlines about declining housing sales, starts and prices. Yet, declines are exactly what we should expect during a correction. It takes time to work through the excess inventory – and we are. The question many are asking is how deep the correction will be and how long it will last. The Case-Shiller index of home prices in 10 major metropolitan areas showed an 11.4 percent decline in home prices over the 12 months ending in January, and the futures market is predicting that the index will decline another 13 percent in 2008. But we do not have a national housing market; housing markets are regional – and there is considerable variation in adjustment, with prices changing the most in areas that had the greatest overbuilding.
Amid this correction, there are many calls to "do something about housing." When people say this, they are urging any number of possible things – minimize foreclosures, make affordable mortgages more available, improve the secondary market and liquidity for mortgages, improve the mortgage origination process, prosecute fraud, reduce the inventory of homes for sale, or help communities hardest hit by foreclosures.
The `to do' list tends to get conflated. We must sort through each of these shared and desired outcomes, carefully choosing policies that minimize the impact of – but do not slow – the housing correction.
on Current Financial and Housing Markets
at the US Chamber of Commerce
http://www.treas.gov/press/releases/hp887.htm
Housing and Mortgage Markets The housing downturn and the surrounding uncertainty are significantly impacting our financial institutions and capital markets. However, we should not lose sight of the fact that this downturn was precipitated by unsustainable home price appreciation which was particularly pronounced in a relatively few regions. A correction was inevitable and the sooner we work through it, with a minimum of disorder, the sooner we will see home values stabilize, more buyers return to the housing market, and housing will again contribute to economic growth. Having stability in housing markets will in turn contribute to better conditions in credit markets for mortgage-backed securities.
Data releases every month create headlines about declining housing sales, starts and prices. Yet, declines are exactly what we should expect during a correction. It takes time to work through the excess inventory – and we are. The question many are asking is how deep the correction will be and how long it will last. The Case-Shiller index of home prices in 10 major metropolitan areas showed an 11.4 percent decline in home prices over the 12 months ending in January, and the futures market is predicting that the index will decline another 13 percent in 2008. But we do not have a national housing market; housing markets are regional – and there is considerable variation in adjustment, with prices changing the most in areas that had the greatest overbuilding.
Amid this correction, there are many calls to "do something about housing." When people say this, they are urging any number of possible things – minimize foreclosures, make affordable mortgages more available, improve the secondary market and liquidity for mortgages, improve the mortgage origination process, prosecute fraud, reduce the inventory of homes for sale, or help communities hardest hit by foreclosures.
The `to do' list tends to get conflated. We must sort through each of these shared and desired outcomes, carefully choosing policies that minimize the impact of – but do not slow – the housing correction.
lendingmaestro_IHB
New member
who said credit spreads were narrowing?
http://www.ft.com/cms/s/0/a5bb2302-fad7-11dc-aa46-000077b07658.html?nclick_check=1
http://www.ft.com/cms/s/0/a5bb2302-fad7-11dc-aa46-000077b07658.html?nclick_check=1
Major Schadenfreude_IHB
New member
I was surprised to see the Economist (in the "Wall Street's crisis" article of the above edition - not linked) say that to shock the markets out of their mistrust, the government ought to use public money to create a floor to the market, either in housing or in asset-backed securities.
In other words, since capitalism isn't working right now (or at least the way they would like to see it working), let's use socialism to get it working again.
I think Adam Smith would argue the markets are working and to leave them alone!
In other words, since capitalism isn't working right now (or at least the way they would like to see it working), let's use socialism to get it working again.
I think Adam Smith would argue the markets are working and to leave them alone!
profette_IHB
New member
Anonymous_IHB
New member
Roubini's latest predictions:
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080324/REG/767507756&template=printart
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080324/REG/767507756&template=printart
Anonymous_IHB
New member
Equity Loans as Next Round in Credit Crisis
http://www.nytimes.com/2008/03/27/business/27loan.html?_r=2&adxnnl=1&ref=business&pagewanted=1&adxnnlx=1206640817-cyeHXFo6U0ovj1Cx0zdrnQ
http://www.nytimes.com/2008/03/27/business/27loan.html?_r=2&adxnnl=1&ref=business&pagewanted=1&adxnnlx=1206640817-cyeHXFo6U0ovj1Cx0zdrnQ
Anonymous_IHB
New member
Video: Bank's offer bitter omeowners money
http://link.brightcove.com/services/link/bcpid86195573/bclid86272812/bctid1475736003
http://link.brightcove.com/services/link/bcpid86195573/bclid86272812/bctid1475736003
IrvineRenter_IHB
New member
The Mortgage and Housing Outlook - March 2008
There are some great charts and graphs in the linked PDF.
There are some great charts and graphs in the linked PDF.
Daedalus_IHB
New member
Page 22 is surely a misplaced remnant. It's a little more "state of the union" than it is "outlook".
graphrix_IHB
New member
Some of my favorite charts from IR's chartpr0n extravaganza...
Frank must be reading Calculated Risk, because this looks very familiar...
Delinquency rates have jumped in markets with flat or falling house values...
ROFLMAO... it is not contained any more, er I mean ever was contained...
Frank must be reading Calculated Risk, because this looks very familiar...
Delinquency rates have jumped in markets with flat or falling house values...
ROFLMAO... it is not contained any more, er I mean ever was contained...
lawyerliz_IHB
New member
Lovely chartporn.
Umm, IR there is an article over on Caculated Risk about how some big homebuilder just got rid of a bunch of partly finished lots in the Inland Empire for 15 Cents on the dollar, and some interesting comments.
Umm, IR there is an article over on Caculated Risk about how some big homebuilder just got rid of a bunch of partly finished lots in the Inland Empire for 15 Cents on the dollar, and some interesting comments.