[movermike] movermike: C-BASS Takes It On The Chin!

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Posted by movermike:
C-BASS Takes It On The Chin!
http://www.movermike.com/posts/1186013901.shtml


   So let me get this straight.

   Subprime lender Fieldstone Investment Corp. of Columbia was acquired
   two weeks ago by Credit-Based Asset Servicing and Securitization LLC
   ([1]C-BASS) for $188 million, which is owned by MGIC Investment Corp.
   (MTG) and Radian Group Inc. (RDN) The two companies invested $1
   Billion in C-BASS.

     MGIC Investment Corp. and Radian Group Inc. announced late Monday
     that they may write off their stakes in C_BASS.

   The money is gone???

   As a result of these troubles, Moody's today has cut the ratings of
   MTG and RDN.

     "[2]Moody's rating actions are a result of MGIC and Radian's
     substantial increases in incurred losses and declines in earnings
     for the second quarter of 2007, and growing concerns regarding
     continued deterioration in the credit quality of the insured
     portfolios and its impact on the firms' individual and combined
     credit profile pending the anticipated merger," Moody's said in a
     statement.

   It seems strange that the market up 150 yesterday and then down 150,
   turns up in the last hour, today, to close up 150, with the news
   coming fast and furious from the mortgage industry.

   [mtg]

   [rdn]

   [3]MGIC Investment Corp. (MTG) [4]Radian Group Inc. (RDN) [5]C-BASS
   [6]Mortgages [7]Mover Mike

References

   1. http://www.c-bass.com/
   2. http://www.reuters.com/article/bondsNews/idUSN0140195920070801
   3. http://technorati.com/tag/MGIC+Investment+Corp.+(MTG)
   4. http://technorati.com/tag/Radian%20Group+Inc.+(RDN)
   5. http://technorati.com/tag/C-BASS
   6. http://technorati.com/tag/Mortgages
   7. http://technorati.com/tag/Mover+Mike