Odds & Ends 08/02/07
U.S. Energy Secretary Bodman recently said that sustained oil prices near $80.00/bbl could impact the economy, which is in what he called the "danger zone." Do ya think?
Fed head Kroszner parroting the Fed mantra: we are watching subprime "very, very closely" and the real economy hasn't been affected by subprime. Alrighty then.
Accredited Home Lenders, #14 U.S. subprime lender last year, said it may go bankrupt unless prices in mortgage markets improve.
AHL's 2006 annual report, filed after a delay of more than four months said more margin calls or a decision by creditors to cut off funds may shut the company. Shares fell 40% and are down 80% YTD.
Analysts estimate American International Group with 4% of assets in sub prime mortgage related securities, may have lost as much as $2.3 B from its subprime backed securities.
AIG could have $35.7B of subprime exposure, In a worst-case scenario, 10% of that may go bad, leaving the insurer with losses of $3.6B, or $2.3B after taxes, equaling 13% of AIG operating earnings.
MBIA's bond insurance subsidiary is rated AAA by the major rating companies. It insures $651 B of municipal and structured finance bonds net of reinsurance.
MBIA directly guarantees securities backed by subprime mortgages, second lien mortgages and home-equity credit lines.
MBIA the world's largest bond insurer, told investors today that the turmoil in the subprime mortgage market poses "no threat" to the $114 B of collateralized debt obligations the company has insured.
Three transactions MBIA insured for Countrywide Financial have hit so called triggers, which means cash is being diverted to more quickly pay off the higher rated bonds that MBIA insured.
Fed head Kroszner parroting the Fed mantra: we are watching subprime "very, very closely" and the real economy hasn't been affected by subprime. Alrighty then.
Accredited Home Lenders, #14 U.S. subprime lender last year, said it may go bankrupt unless prices in mortgage markets improve.
AHL's 2006 annual report, filed after a delay of more than four months said more margin calls or a decision by creditors to cut off funds may shut the company. Shares fell 40% and are down 80% YTD.
Analysts estimate American International Group with 4% of assets in sub prime mortgage related securities, may have lost as much as $2.3 B from its subprime backed securities.
AIG could have $35.7B of subprime exposure, In a worst-case scenario, 10% of that may go bad, leaving the insurer with losses of $3.6B, or $2.3B after taxes, equaling 13% of AIG operating earnings.
MBIA's bond insurance subsidiary is rated AAA by the major rating companies. It insures $651 B of municipal and structured finance bonds net of reinsurance.
MBIA directly guarantees securities backed by subprime mortgages, second lien mortgages and home-equity credit lines.
MBIA the world's largest bond insurer, told investors today that the turmoil in the subprime mortgage market poses "no threat" to the $114 B of collateralized debt obligations the company has insured.
Three transactions MBIA insured for Countrywide Financial have hit so called triggers, which means cash is being diverted to more quickly pay off the higher rated bonds that MBIA insured.
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