Hints and tips:
...Similarly, bankers at UBS, Citi and Merrill Lynch told me in 2008 that one reason why the dangers around repackaged subprime mortgage loans were ignored was that these instruments had supposedly safe triple-A...
...Eventually, borrowers in the US and Europe will be pushed to the market because their mortgage terms are ending and they cannot afford to refinance at far higher rates....
...After all, they noted, that was how America exited its own 1980s Savings and Loans crisis: it auctioned bad loans via a Resolution and Trust Corporation, in a way that pulled opportunistic investors back...
...At the Sohn investment conference in London on Wednesday, Block said he is shorting Blackstone Mortgage Trust, a publicly traded real estate investment trust Blackstone took control of a decade ago as it...
...Credit is trust given financial form. Economic life depends on creditors believing that borrowers will pay interest on loans and return principal when it is due....
...By 2007, his team oversaw tens of billions of dollars. When it came to the brewing US subprime mortgage crisis, Crastes thought doomsayers were getting ahead of themselves....
...More broadly, SVB’s collapse has highlighted the key ingredient to a stable banking sector: trust. “Banking is in part a trust game,” said Judge....
..., bringing with it hundreds of thousands of evictions, a financial meltdown and a destruction of trust in banks....
...Spreads on triple-B commercial mortgage-backed securities, the lowest rung of investment grade, are shooting up: And so are lenders....
...“For the mortgage they didn’t even look at my income,” he says; all the bank required was that he pre-pay the interest on their loans — 3.7 per cent fixed over five years, a total of £925,000 — up front....
...“Remember that problem of the rating agencies in 2007?”...
...When the two hedge funds were liquidated in July 2007, Bear Stearns seized the collateral that secured its loans, sticking them on its once-pristine balance sheet....
..., credit card and other loans....
...“The non-performing loans are coming!”...
...By 2007 if you were breathing you could get a loan.”...
...Compare that to 2007, when the yield was 4.4 per cent and duration was 4.4 years....
...“Loan-to-value ratios have been really disciplined but there has been an aggressiveness in loan pricing which seems to know no bounds right now,” he adds....
...That deal relied on an innovative commercial mortgage-backed securities structure that provided almost $7bn of cash....
...He has likened MERS to the Depository Trust & Clearing Corp, the securities clearing house owned by banks that long dealt in paper share certificates....
...Bronwyn Curtis, chair at JPMorgan Asian Investment Trust: No....
...2007....
...These mortgages allow buyers to roll up the interest costs until they sell the property or to pay interest only on the loans....
...The Paces were among 10,507 borrowers whose home loans Countrywide packed into a set of securities called the CWABS Asset-Backed Certificates Trust 2005-11....
...Month by month trust drained away: investors lost faith in the value of mortgage bonds, the judgment of rating agencies and the balance sheets of banks....
...Bank OZK emphasised that the two loans were made in 2007 and 2008, meaning they were older than nearly all the rest of its loans, which were largely originated since 2015....
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