Friday, Mar 02, 2007
Subprime coming home to roost
FT.com: Subprime woes add to concerns
The recent sharp increase in late payments and defaults on risky US mortgages has added to concerns on Wall Street that complex debt products backed by the loans could be vulnerable to the sector’s troubles.
Until recently, investment banks that packaged and sold CDOs found that subprime mortgages could be used to engineer products with attractive yields for investors starved of returns.
Posted by dohousescrashinthewoods @ 08:50 AM (140 views) Add Comment
1 Comment
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1. financial planner said...
"Countrywide Financial, the biggest US mortgage lender, said on Thursday that payments were late last year on almost 20 per cent of the subprime loans that it services." Fancy that?...
Who'dda thunk it?