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Us Mortgage Lender Sells $20.5 Billion Worth Of Assets To Contunue Functioning

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When will they follow the lead of Countrywide and start laying off staff

'Job cuts' at US mortgage lender

Countrywide has been affected by the sub-prime loans crisis in the US

Countrywide Financial, the biggest US mortgage firm, has begun laying off staff as it tries to weather the credit crunch, according to US media reports.

The company has been hit by sub-prime mortgage defaults as rising interest rates in the US have made it harder for people to pay their mortgages.

Countrywide's shares have slumped amid investor fears it may face bankruptcy

Grim news from across the pond, only a matter of time before it hits home in the UK

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When will they follow the lead of Countrywide and start laying off staff

'Job cuts' at US mortgage lender

Countrywide has been affected by the sub-prime loans crisis in the US

Countrywide Financial, the biggest US mortgage firm, has begun laying off staff as it tries to weather the credit crunch, according to US media reports.

The company has been hit by sub-prime mortgage defaults as rising interest rates in the US have made it harder for people to pay their mortgages.

Countrywide's shares have slumped amid investor fears it may face bankruptcy

Grim news from across the pond, only a matter of time before it hits home in the UK

I heard this morning on Bloomberg TV that up until last week Countrywide were recruiting the people who were being laid of by other mortgage lenders, clearly a feeble attempt to reassure their investors that all was ok with them.

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"US mortgage lender Thornburg has sold $20.5bn (£10.3bn) of assets and reduced its borrowings amid a tough market for home loans."

They say these assets were mortgage-backed securities. They've just passed the baby to someone else.

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When will they follow the lead of Countrywide and start laying off staff

'Job cuts' at US mortgage lender

Countrywide has been affected by the sub-prime loans crisis in the US

Countrywide Financial, the biggest US mortgage firm, has begun laying off staff as it tries to weather the credit crunch, according to US media reports.

The company has been hit by sub-prime mortgage defaults as rising interest rates in the US have made it harder for people to pay their mortgages.

Countrywide's shares have slumped amid investor fears it may face bankruptcy

Grim news from across the pond, only a matter of time before it hits home in the UK

Scary. :unsure:

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"US mortgage lender Thornburg has sold $20.5bn (£10.3bn) of assets and reduced its borrowings amid a tough market for home loans."

http://investor.thornburgmortgage.com/phoe...&highlight=

How worried should we be?

This is presumably another way of saying "Purchaser decides to buy $20.5bn of mortgage assets". The article mentions a loss of $900m of which $700 was identified a couple of months ago. If a business or group of businesses is prepared to buy these mortgages, in the eye of the financial storm, at the heart of the global contagion, as things hatch from the mud etc etc etc, doesn't it mean that these loans have value after all?

So when people say that no one knows what losses lie amongst well rated stock (this is - AAA ie pretty crap/sub prime as my pet dog can get BBB status) - i assume people actually can work it out afterall and conclude some sub prime mortgages have value.

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This is presumably another way of saying "Purchaser decides to buy $20.5bn of mortgage assets". The article mentions a loss of $900m of which $700 was identified a couple of months ago. If a business or group of businesses is prepared to buy these mortgages, in the eye of the financial storm, at the heart of the global contagion, as things hatch from the mud etc etc etc, doesn't it mean that these loans have value after all?

So when people say that no one knows what losses lie amongst well rated stock (this is - AAA ie pretty crap/sub prime as my pet dog can get BBB status) - i assume people actually can work it out afterall and conclude some sub prime mortgages have value.

Is this just a stunt? A cheap way for the Fed BOE to spead the notion that the taix stuff has value and to keep the market happy.

I am deeply suspicious.

Sounds like market manipulation on the cheap.

HAL

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Is this just a stunt? A cheap way for the Fed BOE to spead the notion that the taix stuff has value and to keep the market happy.

I am deeply suspicious.

Sounds like market manipulation on the cheap.

HAL

I wonder. No mention of the buyer(s)......

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Sub-Prime mortgage loans 33 cents per $.

Alt-A 68 cents per $.

Jumbo-Prime 95 cents per $.

No doubt the most toxic debt is worth even less as we proceed - but if cheap somebody will make money out of it - isn't that the problem they can't sell their bags of doo-doo for what they hoped - hence the quoted losses ?

How much has Northern Rock lost on paper with this deal - and why sell now - because they must ? :unsure:

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