Comments on: Downgrade spree on mortgage papers http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/ Being in the flock of those who hate to be in the herd Sun, 06 Dec 2009 06:36:30 +0000 http://wordpress.com/ hourly 1 By: Cade Maya http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-11701 Cade Maya Fri, 04 May 2007 04:32:19 +0000 http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-11701 You forgot to cite the references http://www.heroes-del-silencio-oficial.es You forgot to cite the references

http://www.heroes-del-silencio-oficial.es

]]> By: foreclose_me http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7642 foreclose_me Mon, 15 Jan 2007 00:25:24 +0000 http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7642 Well, since Clear Choice (CLRC) just announced they are insolvent, and they are the owner of Bay Capital, perhaps BC is Bay Capital? Well, since Clear Choice (CLRC) just announced they are insolvent, and they are the owner of Bay Capital, perhaps BC is Bay Capital?

]]> By: theroxylandr http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7510 theroxylandr Thu, 11 Jan 2007 23:18:34 +0000 http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7510 On those Fitch downgrade pages the word "Ameriquest" is quite popular. I think those guys are getting a collateral call to put money there. And J.P. Morgan is tired of losing money on this. On those Fitch downgrade pages the word “Ameriquest” is quite popular. I think those guys are getting a collateral call to put money there.

And J.P. Morgan is tired of losing money on this.

]]> By: Dave Kranzler http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7508 Dave Kranzler Thu, 11 Jan 2007 22:56:32 +0000 http://theroxylandr.wordpress.com/2007/01/11/downgrade-spree-on-mortgage-papers/#comment-7508 I used to analyze the Citiscape collateral trusts with my analyst back in my junk bond trading days cuz I had a huge short in Citiscape bonds. I believe "OC" means the "outstanding collateral." the "target amount" is the amount the trust is overcollateralized in order to allow for losses or prepayments. If the trust is 33% below its overcollateralization bogey, that is disasterous for the bond holders of all but the highest rated layers. If the cumulative losses are .92%, that means the mortgage company that originated the loans and stuffed them into the trust is most likely making "make-whole" payments, PLUS, these trusts usually have a collateral/capital call on the originator if the trust starts experiencing losses beyond what is modelled into struture. At 20.8% deliquency and .92% cumulative losses, the trust sponser is no doubt making payments into the trust. this trust is 2003 vintage. it would be nice to know who "BC" is, because that is most likely the originating mortgage firm. any trusts they have subsequent to 2003 are probably in worse shape, because, as we know, the overall credit quality of the mortgage pool has declined. this problem is just now getting some recognition. it will be the financial equivalent of a nuclear war for our economy. I used to analyze the Citiscape collateral trusts with my analyst back in my junk bond trading days cuz I had a huge short in Citiscape bonds. I believe “OC” means the “outstanding collateral.” the “target amount” is the amount the trust is overcollateralized in order to allow for losses or prepayments. If the trust is 33% below its overcollateralization bogey, that is disasterous for the bond holders of all but the highest rated layers. If the cumulative losses are .92%, that means the mortgage company that originated the loans and stuffed them into the trust is most likely making “make-whole” payments, PLUS, these trusts usually have a collateral/capital call on the originator if the trust starts experiencing losses beyond what is modelled into struture. At 20.8% deliquency and .92% cumulative losses, the trust sponser is no doubt making payments into the trust.

this trust is 2003 vintage. it would be nice to know who “BC” is, because that is most likely the originating mortgage firm. any trusts they have subsequent to 2003 are probably in worse shape, because, as we know, the overall credit quality of the mortgage pool has declined.

this problem is just now getting some recognition. it will be the financial equivalent of a nuclear war for our economy.

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