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Mortgage Backed Securities Related News
 in chronological order

 See also: Mortgage Backed Securities Related Books, Mortgage Backed Securities Related Scholarly Papers, or Mortgage Backed Securities Home Page.

Table of Contents:
 

Lehman's Fuld Confident in Prospects as Firm Slashes Mortgages

June 16, 2006
From Bloomberg:
Lehman Brothers Holdings Inc. Chief Executive Officer Richard Fuld declared his "confidence'' in the firm's prospects after the bank slashed mortgage holdings 20 percent in the second quarter to curb further damage from the credit-market collapse.

Lehman, the fourth-largest U.S. securities firm, rose in New York trading after reporting a loss of $2.8 billion, or $5.14 per share, in line with preliminary figures the company released last week, the New York-based firm said today in a statement. Leveraged buyout loans were cut 37 percent to $18 billion.

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Thornburg swings to $3.3 bln loss
June 12, 2006
From MarketWatch:
Thornburg Mortgage Inc. on Thursday reported a quarterly loss of more than $3 billion as the company was hit hard by falling market values in its mortgage and loan portfolios.

The embattled company said it swung to a fiscal first-quarter loss of $3.31 billion, or $20.64 a share, compared with net income of $75 million, or 62 cents a share, in the year-ago period.

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American Capital Goes For Mortgage Paper
April 28, 2006
From Forbes:
While many on Wall Street and Main Street are suffering from subprime woes, the smart money is gearing up to capitalize on cheap debt.

Newly formed investment outfit American Capital Agency said Monday that it plans to go public offering 12.5 million shares at $20 per share raising a projected $250.0 million. The Delaware-based company plan to use the raised funds to invest in mortgage-backed securities directly or implicitly guaranteed by the U.S. government.

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Citigroup, RAMS eye A$ mortgage-backed debt: sources
April 27, 2006
From Reuters:
Citigroup (C.N: Quote, Profile, Research) and RAMS Home Loans Group Ltd (RHG.AX: Quote, Profile, Research) are in discussions with investors about selling residential mortgage-backed securities (RMBS), sources said on Monday, in what would be the first such issues this year.

The RMBS market has been hit worldwide by the U.S. subprime mortgage crisis, which has sent borrowing costs sharply higher. Issuance of RMBS in Australia has completely dried up in 2008, from A$57 billion in 2007.
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Allstate feels mortgage-backed securities pain
April 23, 2006
From The Chicago Tribune:
Allstate Corp., hurt by big writedowns of mortgage-backed securities and by hefty tornado-related damage payouts, said late Wednesday that first-quarter earnings dropped 77 percent.

Net income for the Northbrook-based insurance giant tumbled to $348 million, or 62 cents a share, from the year-ago net of $1.5 billion, or $2.41 a share.
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Australia's Central Bank Buys Mortgage-Backed Bonds (Update1)
April 21, 2006
From Bloomberg:
Australia's central bank bought A$780 million ($730 million) of mortgage-backed bonds in its biggest purchase of this debt to support the nation's dormant home-loan securities market. Bank shares rallied in Sydney trading.

The Reserve Bank of Australia today purchased A$600 million of home-loan bonds in a lending agreement lasting 353 days at 7.85 percent; A$80 million for 346 days at 7.78 percent; and A$100 million for 22 days at 7.45 percent, it said in a market report.

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The future for investing in mortgage-backed securities 2008
March 20, 2006
From Banking Business Review:
This brief assesses the extent of the current problems and the future for investing in these securities. Please note: This brief does NOT discuss MBS pricing or estimate future MBS asset values.

Sizes the historic MBS market by issuance through 2006 in the US, Europe, the UK and Australia, and presents the size of worldwide exposure to US MBS
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RBS mortgage-backed exposure doubles to £68bn
March 19, 2006
From Financial Times:
Royal Bank of Scotland's portfolio of mortgage-backed securities has more than doubled to about £68.3bn last year after it led the consortium that bought the Dutch bank ABN Amro.

The UK bank, whose shares have lost more than 40 per cent of their value in the past year amid concerns about the credit squeeze, gave further details of the credit portfolio in its annual report.
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Asia Day Ahead: Fed to Take on Mortgage-Backed Debt (Update1)
March 12, 2006
From Bloomberg:
U.S. stocks rallied the most in five years after the Federal Reserve said it will pump $200 billion into the financial system to shore up banks battered by mortgage-related losses. Crude rose to a record for a fifth day after the weak dollar prompted traders to invest in commodities.
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Carlyle founders in talks with banks to prevent fire sale of fund's mortgage-backed securities
March 11, 2006
From StarTribune.com:
The Carlyle Group's founders are talking to creditors about how to prevent liquidation of a distressed London-based affiliate invested in mortgage-backed securities, a spokesman said Tuesday.

Top Carlyle executives are negotiating with major U.S. banks in an effort to prevent the fire sale of $16 billion in securities held by the Carlyle Capital Corp. Ltd., a publicly traded fund.
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Reviving the mortgage market
March 5, 2006
From BBC news:
It wasn’t just Northern Rock that flogged off its mortgages to international investors in the form of asset-backed securities.

More or less every British bank used this global market as a source of cheap funding: something like a quarter of all British mortgages are financed by the sale of mortgage-backed bonds.
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U.S. Commercial property bonds have worst month in Feb
March 4, 2006
From Reuters:
Bonds backed by U.S. office buildings and hotels suffered their worst month ever in February as investors girded for falling property prices and rising defaults, according to Lehman Brothers.

Commercial mortgage-backed securities lagged benchmark U.S. Treasuries by a record amount in February, even underperforming the asset class that includes bonds backed by risky subprime mortgages, according to indexes compiled by Lehman Brothers Holdings Inc.
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Mortgage Backed Securities Fight Inflation
February 26, 2006
From MortgageNewsDaily:
Perhaps it's due to yesterday's sell off, or perhaps there is support from weak economic data, but even in the face of dismal inflation data, MBS are holding steady on the day.

the 5.5% coupon is actually trading up right now by 6/32nds. This is truly amazing considering we've received some of the worst inflation numbers in over 20 years. The core Producer Price Index came in at .4%, double the expectation of 2%. This should have destroyed rates this morning, but it hasn't. There are a couple mitigating factors.
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UK mortgage-backed securities prices 'irrationally pessimistic' - economist
February 21, 2006
From CNNMoney.com:
The potential for UK mortgage costs to increase because of 'irrationally pessimistic' prices on mortgage-backed securities markets is one of the key risks currently facing the housing market, an economist warned.

David Miles, chief UK economist at Morgan Stanley (NYSE:MS) , said that fears in the market for mortgage-backed securities may have been overdone, and prices have climbed too high as a reaction to years of exuberant risk-taking.
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Credit Suisse profits plunge on subprime losses
February 12, 2006
From Telegraph.co.uk:
Credit Suisse has revealed that profits plummeted by 72pc in the final quarter of 2007, as the investment bank battled the crisis in the global credit markets.

Switzerland's second biggest bank said today that it suffered writedowns of SFr1.3bn (£603m) on debt and leveraged loans - helping to push net profits for the quarter back to SFr1.33bn, missing average analysts expectations of SFr1.43bn.
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S&P cuts $7.65 bln in CDOs backed by mortgages
February 11, 2006
From Reuters:
Standard & Poor's on Monday cut ratings on $7.65 billion in collateralized debt obligations backed by residential mortgage-backed securities, following credit deterioration and downgrades of the mortgage securities underlying the deals.

The downgrades affect 67 tranches from 10 CDOs, S&P said in a statement. Including the new downgrades, S&P has cut its ratings on 1,509 tranches from 430 deals, and an additional 2,441 pieces from 608 deals remain on review for downgrade. In total, the actions affect $343.9 billion in debt, S&P said.
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Freddie Looks to Grow in Apartment Financing
February 4, 2006
From The Wall Street Journal Online:
Freddie Mac, looking to expand its role in financing apartment buildings, is working on a proposal that would allow it to create and sell bonds backed by multifamily mortgages.

The move, if approved by Freddie's management and regulators, would allow the government-sponsored provider of home funding to be more competitive with Wall Street.
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Moody's To Review Australian Mortgage-Backed Securities
February 4, 2006
From Forbes:
Moody's said on Monday that it may cut the ratings on 83 billon Australian dollars (U.S.$75.1 billion) worth of mortgage-backed debt, following the rating agency's latest action to place U.S. bond issuer PMI Mortgage Insurance on watch for a possible downgrade.

PMI's subsidiary in Australia provides a range of mortgage insurance products to bank and nonbank lending institutions in that country and New Zealand. Moody's placed 325 tranches from 144 Australian residential mortgage-backed securities transactions on review for a possible downgrade.
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E-Trade sells $3B mgte-backed securities
January 9, 2006
From BusinessWeek:
 Troubled discount brokerage E-Trade Financial Corp., which Tuesday saw shares dip to an all-time low on growing mortgage segment losses, said Wednesday it sold about $3 billion of mortgage-backed securities and municipal bonds in addition to the November sale of its $3 billion asset-backed portfolio.

E-Trade also said it will exit its institutional trading business, impacting about 30 employees. The company in September said it would terminate its international institutional business based on poor financial performance.
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New Zealand residential mortgage-backed securities arrears fall again - S&P
January 9, 2006
From CNNMoney.com:
 Standard & Poor's (NYSE:MHP) Ratings Services said the proportion of loans underlying New Zealand's residential mortgage-backed securities (RMBS), that are in arrears by more than 30 days, fell again over the quarter ending Sept 30.

The arrears, as measured by the ratings agency's New Zealand Prime Mortgage Performance Index, dropped to one of its lowest levels in over three years during the quarter, S&P credit analyst Alastair Ingram said.
Source