GLG News by Asset Backed Securities Experts

The reduction in interest rates is going to have a negative impact on the existing mortgage portfolios due to adverse selection. The decrease in those seeking unemployment benefits is very misleading. The stimulus package is not going to help those in real trouble and will pay some bills for most.

If this had been a mere subprime crisis, it would now be over. But it is not, and nor will it be over soon.  Any near-term rally in the bear market is likely to be led by U.S. companies that will get the biggest bang from the Federal Reserve's latest interest-rate cut. But this is exactly the part...

Any near-term rally in the bear market is likely to be led by U.S. companies that will get the biggest bang from the Federal Reserve's latest interest-rate cut. But this is exactly the part of the economy where the reality of a slow recovery has the power to repeatedly dash premature optimism. Take...

This is not merely a subprime crisis.  Several other (and larger) pockets of the credit market are also vulnerable, (such as) credit default swaps, relatively modern financial instruments that allow bondholders to insure against default.

 Fed rate cuts of the short term are not the right solution for what ails our modern financial system today. The Fed’s goal should be to solve the persistent problem in the Interbank market through the use of two solutions, one short-term and the other long-term that I describe.

Over valued versus the risk of litigation, talent flight, legislative constraints, portfolio loss and about every other imaginable variable. Overvalued servicing rights with disappointed servicing investors. Average industry systems, nothing great. Short staffed already. More leaving. Mozillio defineltly...

While on paper the acquisition versus the valuation of loan servicing looks good, the reality is a whole mess of operational and regulatory risk. The Countrywide CIO was just announced leaving for FIS (Fidelity) and the state of the art systems was one of the selling points in the acquisition. An asset...

In 2008, writedowns expected due to CLOs or LBOs should be smaller in magnitude than the $50B writedowns we have observed due to mortgage bond devaluations.

This article summarises Temasek's recent equity investment in Merrill, including the price paid and future intentions.  Temasek appears to be more than satisfied with its investment and is inclined toward similar investments (financial institutions undervalued due to over-estimates of subprime/CDO...

1 Rating agencies should perhaps step back a little from ratings based largely on what they put forward as immutable quantitative stress tests that were not supposed to change with the credit cycle and turn a bit more to judgment and subjectivity because credit is not just a numbers game. ...