Tuesday, Aug 21, 2007

companies will be forced to sell $75 billion of debt backed by mortgages

bloomberg.com: Commercial Paper Roils Borrowers With $550 Billion Coming Due

The $1.1 trillion market for commercial paper used to buy assets from mortgages to car loans has seized up just as more than half of that amount comes due in the next 90 days, according to the Federal Reserve. Unless they find new buyers, hundreds of hedge funds and home-loan companies will be forced to sell $75 billion of debt backed by mortgages, according to Zurich-based UBS AG, Europe's largest bank.

Posted by chris :-)) @ 10:48 AM (258 views) Add Comment

1 Comment

1. Orwell said...

"...Wall Street is in a ``financial panic'' and won't fund any mortgage bonds, even AAA rated bonds backed by prime home loans, said Garrett Thornburg, chief executive officer of Thornburg, which makes loans of more than $417,000 to people with good credit..."

We do now have a very serious Sub Prime problem don't we Mr. Smith?

Mr. Smith?

Mr. Smith?

Tuesday, August 21, 2007 10:49AM Report Comment
 

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