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The mortgage mess is not over but it's partly over --ZT

(2008-01-18 23:57:28) 下一個
To discover just how much more pain is ahead for the
subprime industry (and all those CDO holders) let\'s turn
to the Quarterly Data Report.

According to the QDR, since the first quarter of 2005
mortgage bankers of all stripes (insured depositories among them)
have funded $1.645 trillion in subprime loans.

Most of these loans, presumably, have been securitized.
To date, Wall Street firms and banks have written down
the value of their securities and CDOs by $100 billion
or just 6.07% of the loans funded in those years.

The big question is how much farther do we have to go?
Let\'s assume the actual losses on the $1.645 trillion
are 10%. That\'s $164.5 billion. So, if to date, the
losses are $100 billion that means we have $64
billion to go
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