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| 5/23 |
| 2008/1/30-2/2 [Finance/Investment] UID:49036 Activity:low |
1/30 http://www.bloomberg.com/apps/news?pid=20601087&sid=aM4dOmbQIYTk S&P downgrades, sets "credit watch negative" to $534 billion in RMBS and CDO issues. Boooo! \_ http://www.reuters.com/article/ousiv/idUSN3023531520080130 FGIC downgraded to AA as well. \_ Boooo! \_ So the market appears to have shrugged off all the bad news. Time to buy? |
| 5/23 |
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| www.bloomberg.com/apps/news?pid=20601087&sid=aM4dOmbQIYTk Bloomberg Press S&P Lowers or May Cut $534 Billion of Subprime Debt (Update2) By Jody Shenn Jan. The downgrades may extend losses at the world's banks to more than $265 billion and have a ripple impact'' on the broader financial markets, S&P said. The downgrades may increase losses at European, Asian and US regional banks, credit unions and the 12 Federal Home Loan Banks, S&P said. Many of those institutions haven't written down their subprime holdings to reflect their market values and these downgrades may force their hands, S&P said. It is difficult to predict the magnitude of any such effect, but we believe it will have implications for trading revenues, general business activity, and liquidity for the banks,'' S&P said. More than 69 percent of the AAA rated subprime securities from 2006 and 46 percent from the first half of 2007 were placed on review. Didn't See It This one, I didn't see coming,'' said Mark Adelson a consultant at Adelson & Jacob Consulting LLC in New York, and a former asset-backed bond analyst at Nomura Securities. Some of the largest global banks have already taken significant'' losses and they aren't likely to have more writedowns, S&P said. The world's largest banks have reported losses exceeding $133 billion related to mortgages, CDOs and leveraged loans. If you're holding a AAA piece and it's now downgraded to AA, you might have to write it down, even if you're holding it for an investment,'' Gary Gordon, a bank stock analyst at Portales Partners LLC in New York, said. |
| www.reuters.com/article/ousiv/idUSN3023531520080130 Fitch cut FGIC's "AAA" insurer financial strength rating by two notches to "AA," saying the insurer does not have the capital required for a top rating. It also cut parent company FGIC Corp's long-term rating by three notches to "A" from "AA," the third-highest investment grade. The ratings may be cut again because of uncertainty about the company's business model, losses and capital strategy, Fitch said in a statement. Top ratings are crucial to bond insurers because without them, their insurance loses much of its value. The insurance has also allowed states and cities to sell debt with top ratings, lowering their borrowing costs. Fitch warned in December that the loss of FGIC's "AAA" rating could also trigger downgrades to as many as 114,800 municipal bond issues it insures. The total also included about $31 billion of mortgage-backed securities and $28 billion of collateralized debt obligations. The ratings cut added to selling pressure in the stock market, where concerns about downgrades of bond insurers had already triggered selling. com, video, mobile, and interactive television platforms. Reuters journalists are subject to the Reuters Editorial Handbook which requires fair presentation and disclosure of relevant interests. |