Monday, Apr 09, 2007
market woes spread further than subprime...surprise surprise....UK next?
housingwire.com: market woes move to alt-a
American Home Mortgage Investment Corp. (NYSE: AHM), a large Alt-A mortgage lender, said Friday afternoon that it expects lower income in the first quarter and full year 2007 than previously forecasted, due to conditions in the secondary mortgage and mortgage-backed securities markets. The announcement comes ahead of the company’s first quarter results, which are set to be released April 30.
“During March, conditions in the secondary mortgage and mortgage securities markets changed sharply,” said Michael Strauss, American Home’s chairman and CEO.
Posted by taffee @ 08:13 AM (160 views) Add Comment
1 Comment
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1. Whiteknight said...
Great. News moves on.
Now we can drop the attempt that lenders have made to compartmentalise a problem by calling a certain area of lending sub prime. (neat trick that. if a problem surfaces.... label it. Identify it as different and then nobody will spot its on the same models with just different variables)
In reality a lot of lending and borrowing has been beyond the normal definition of reckless.
The credit markets are using the same dud models to value the lot. They have not even partially understood how correlation effects will wipe out swathes of borrowers at once.
Sharp changes are the norm. Dull linear thinking will get you killed. Feedback loops accelerate very quickly.
Things can look OK for the best part of a year and then it can be all over in a few days.