[movermike] movermike: Bond Holders Bitten

[Email subscription to blog articles]

Posted by movermike:
Bond Holders Bitten
http://www.movermike.com/posts/1177435447.shtml


   This from Bank Net360

     [1]Bond investors stand to lose as much as $75 billion on
     securities comprised of nonprime mortgages, according to Pacific
     Investment Management Co.

     Newport Beach, Calif.-based Pacific manages one of the worldâs
     biggest bond funds, with more than $600 billion of assets.

     Investors are situated to take the brunt of asset-backed losses
     connected with the nonprime market, because they have replaced
     banks and thrifts as the primary source of funding for U.S.
     mortgages.

     In Riverside County, California, a tripling of foreclosures has led
     to a steep drop in the value of bonds sold by Lehman Brothers
     Holdings Inc., the fourth-largest U.S. securities firm.

     Sold in Jan. 2006, the bonds used Riverside loans as collateral.
     Some of the lowest-rated portions of the securities now trade at
     $0.63 on the dollar, down from more than 100 cents in October,
     according to data compiled by Merrill Lynch.

   Ouch! That's going to leave a scar.

   [2]nonprime mortgages [3]subprime mortgages [4]Mover Mike

References

   1. http://www.banknet360.com/news/NewsAbstract.do?na_id=8589
   2. http://technorati.com/tag/nonprime+mortgages
   3. http://technorati.com/tag/subprime+mortgages
   4. http://technorati.com/tag/Mover+Mike