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rockysan99
ParticipantMoody’s Investors Service said Friday it downgraded 131 mortgage investments backed by loans issued to people with weak, or subprime, credit histories.
More people who took out subprime mortgages, especially adjustable-rate loans issued over the past two years, have been defaulting on their monthly payments as their mortgages reset to higher rates.
That, in turn, makes mortgages pooled into securities and sold to investors a riskier proposition.
Moody’s said it also put 237 securities on review for further downgrades, including 111 of those already downgraded Friday. The downgrades affects both investment-grade and below-investment grade debt, including securities that had been rated ‘Aa’, ‘Aaa’ or ‘A’ and below, Moody’s said.
The ratings agency’s action affects mortgage securities issued by companies including Bear Stearns Cos., Merrill Lynch & Co., Credit Suisse Group, First Franklin Corp., and IndyMac Bancorp Inc
ParticipantObviously you have no concept of what is going on in this Bear Stearns Hedge Fund crisis and I’m not going to waste anytime explaining it to you. YOu’ll find out soon enough if they do not contain it. Me? I’m short the market and you know what? It’s raining cash. Here, hold my kool-aid while I open my umbrella
ParticipantObviously you have no concept of what is going on in this Bear Stearns Hedge Fund crisis and I’m not going to waste anytime explaining it to you. YOu’ll find out soon enough if they do not contain it. Me? I’m short the market and you know what? It’s raining cash. Here, hold my kool-aid while I open my umbrella
ParticipantThis is serious. Very serious
The Bear Stearns fiasco is spilling out. These subprime CDOs are being re-valued from par and now we’re finding out what they are worth…nothing. This firm was wiped out over night.
God save us now if this creates a domino effect. If more of these CDOs get revalued lower, and you know they are not worth what these firm are claiming they are, we’re in for a real meltdown. A serious meltdown that will take more than the housing industry with it.ParticipantThis is serious. Very serious
The Bear Stearns fiasco is spilling out. These subprime CDOs are being re-valued from par and now we’re finding out what they are worth…nothing. This firm was wiped out over night.
God save us now if this creates a domino effect. If more of these CDOs get revalued lower, and you know they are not worth what these firm are claiming they are, we’re in for a real meltdown. A serious meltdown that will take more than the housing industry with it.ParticipantBuy low, Sell high
Do the opposite as everyone else does. Especially when the media is in a frenzy (see tech bubble 1999, Housing Market 2004-5 and today’s stock market). I avoided the tech crash, sold my house in August 05 and am currently short the market as of May 1st (companies that are likely to get crushed by the housing crash). ABK, MBI, LFG, WHR, BKD, RCL, MGM, etc
ParticipantBuy low, Sell high
Do the opposite as everyone else does. Especially when the media is in a frenzy (see tech bubble 1999, Housing Market 2004-5 and today’s stock market). I avoided the tech crash, sold my house in August 05 and am currently short the market as of May 1st (companies that are likely to get crushed by the housing crash). ABK, MBI, LFG, WHR, BKD, RCL, MGM, etc
ParticipantCALPERS bought into these Bear Stearns CDOs
Banks Sell ‘Toxic Waste’ CDOs to Calpers, Texas Teachers Fund
By David Evans
June 1 (Bloomberg) — Bear Stearns Cos., the fifth-largest U.S. securities firm, is hawking the riskiest portions of collateralized debt obligations to public pension funds.
At a sales presentation of the bank’s CDOs to 50 public pension fund managers in a Las Vegas hotel ballroom, Jean Fleischhacker, Bear Stearns senior managing director, tells fund managers they can get a 20 percent annual return from the bottom level of a CDO.
“It has a very high cash yield to it,” Fleischhacker says at the March convention. “I think a lot of people are confused about what this product is and how it works.”
http://www.bloomberg.com/apps/news?pid=20601109&sid=aW5vEJn3LpVw&refer=home
ParticipantCALPERS bought into these Bear Stearns CDOs
Banks Sell ‘Toxic Waste’ CDOs to Calpers, Texas Teachers Fund
By David Evans
June 1 (Bloomberg) — Bear Stearns Cos., the fifth-largest U.S. securities firm, is hawking the riskiest portions of collateralized debt obligations to public pension funds.
At a sales presentation of the bank’s CDOs to 50 public pension fund managers in a Las Vegas hotel ballroom, Jean Fleischhacker, Bear Stearns senior managing director, tells fund managers they can get a 20 percent annual return from the bottom level of a CDO.
“It has a very high cash yield to it,” Fleischhacker says at the March convention. “I think a lot of people are confused about what this product is and how it works.”
http://www.bloomberg.com/apps/news?pid=20601109&sid=aW5vEJn3LpVw&refer=home
ParticipantYou can play the obvious
But keep in mind so is everyone else and no one makes money doing what everyone else does, especially at the top/peak of a market. Anyone who reads this website knows that by know. I maintain that you go second tier company’s behind the homebuilders, behind the automakers. In fact the stocks I recommended last nite all got hit pretty good today. Only the cruise lines were up fractionally. WHR was off about $3, ABK down $2, etc, etc.
This Bear Stearns thing may be the catalyst here.ParticipantYou can play the obvious
But keep in mind so is everyone else and no one makes money doing what everyone else does, especially at the top/peak of a market. Anyone who reads this website knows that by know. I maintain that you go second tier company’s behind the homebuilders, behind the automakers. In fact the stocks I recommended last nite all got hit pretty good today. Only the cruise lines were up fractionally. WHR was off about $3, ABK down $2, etc, etc.
This Bear Stearns thing may be the catalyst here.ParticipantAuto Parts Makers
Earlier I mentioned Auto Parts makers but neglected to name them. Check out Johnson Controls (JCI) and Genuine Parts (GPC). Both are at or near their highs and as you know or should know, GM got massacred via the housing crunch in their last earnings released (see also GMAC). Quite ugly. Well, if the automakers are being squeezed, these guys are sure to follow
ParticipantAuto Parts Makers
Earlier I mentioned Auto Parts makers but neglected to name them. Check out Johnson Controls (JCI) and Genuine Parts (GPC). Both are at or near their highs and as you know or should know, GM got massacred via the housing crunch in their last earnings released (see also GMAC). Quite ugly. Well, if the automakers are being squeezed, these guys are sure to follow
ParticipantBSC, CFC I considered both
But CFC (Countrywide Finance) has been in a sideways range for a very long time and to me is too obvious here. Still, if one were to play it on the downside I could certainly make a case for it. Bear Stearns looks like it is ripe for a major whacking although it has already dropped from $165 to $150 it certainly has more room to fall. I’ll tell you one that I really like that no one has considered. Over the last 3 years it has skyrocketed ($40 to $106) on the back of the housing explosion and while most housing related stocks have taken the obvious hit, this one is like a guillotine being raised. Check out Landamerica Financial Group (LFG). You want to short (or buy puts) at the high and this one is there. What do they do? Title insurance. Home sales are plunging so that means title insurance earning are going to be taking a hit. For the savvy, ballsy investor willing to go against the crowd, this one is a beauty. Oh it has all the earmarks of a fat money maker. If you buy yourself a put on this one, make sure to give yourself plenty of time. It has puts that go out to Jan 2009. Check it out. Another title insurer that is also ripe and sells in the $50s after a run up is First American (FAF)
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