3 days ago

ABX Poor Predictor of Subprime MBS Losses      Similar

The widely-used ABX price indices are not a good predictor of likely losses on subprime-backed mortgage backed securities, a new paper published in the latest Bank for International Settlements Quarterly Review suggests. The so-called ABX indices, which are based on credit derivatives written on MBS backed by subprime mortgage loans, track the price of credit default [...]
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1 day ago

Home loan troubles break records again      Similar

The source of trouble in the mortgage market has shifted from subprime loans made to borrowers with bad credit to homeowners who had solid credit but took out exotic loans with ballooning monthly payments. In this July 2, 2008 file photo, a foreclosed home is seen for sale in Sacramento, Calif. A record 9 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis continues to mount, the Mortgage Bankers Association said Friday, Sept. 5, 2008. In this Aug. 13, 2008 file photo, a foreclosed home sits...
Feed: SacBee -- Wire Real Estate

1 day ago

FINANCIAL TSUNAMI BUILDING ACCORDING TO WORLD'S BIGGEST BOND FUND MANAGER      Similar

U.S. Must Buy Assets to Prevent `Tsunami,' Gross Says By Jody Shenn Sept. 4 (Bloomberg) -- The U.S. government needs to start using more of its money to support markets to stem a burgeoning ``financial tsunami,'' according to Bill Gross, manager of the world's biggest bond fund. Banks, securities firms and hedge funds are dumping assets, driving down prices of bonds, real estate, stocks and commodities, Gross, co-chief investment officer of Newport Beach, California-based Pacific Investment Management Co., said in commentary posted on the firm's Web site today. ``Unchecked, it can turn a campf...
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