Tag:
Alt-A
Latest Headlines
Latest Headlines
Alt-A loans, the coming convulsion?
There is a subtle undercurrent of fear on Wall Street about Alt-A loans. JPMorgan has about $19.5 billion worth of exposure to Alt-A mortgages, and it likely is not alone. I would be surprised if banks have written off much against these assets. CalculatedRISK notes that "subprime delinquencie
JPMorgan raises $1.6 billion
JPMorgan Chase was able to raise $1.6 billion to buttress its balance sheet, but the money did not come cheap. The preferred debt issue carries a whopping 8.7 percent interest rate. The Financial Times reports that this is the highest rate offered by the bank on preferred debt since the bi
Are Alt-As next to blow up?
The Financial Times notes that the many rumors that UBS had sold its entire portfolio of Alt-A related bonds to Pimco may well have been true, given the big UBS writedown this week. Some think the sale valued the bonds at around 70 cents on the dollar. So far, Alt-A-backed securities have hel
Subprime delinquencies still rising
Don't think it's almost over. Delinquencies for subprimes extended in 2005 to 2007 are still rising, according to Standard & Poor's. For 2005 and 2006, the increases have been boosted to the 35 percent level. For subprimes issued in 2007, the increase has been higher, to about 25 percent. You
