http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html Freshly squeezed market commentary & analysis Tue, 02 Dec 2008 02:01:13 +0000 http://wordpress.org/?v=2.0.2 http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-15463 Wed, 29 Aug 2007 16:11:27 +0000 http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-15463 [...] Basically, sentiment surveys provide more insight on what has happened and how the consumer is now responding to previous economic situations (the sub-prime mess for one). They do not really provide any insight into the future, except as a contrarian signal. [...] […] Basically, sentiment surveys provide more insight on what has happened and how the consumer is now responding to previous economic situations (the sub-prime mess for one). They do not really provide any insight into the future, except as a contrarian signal. […]

]]> http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-10588 Sun, 05 Aug 2007 08:19:46 +0000 http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-10588 Before we think that there is a spill over, lets wait and see. AHM is merely a conduit, a pass through if you will. Friends of mine at Wells Fargo, a major buyer of AHM paper, explained to us that they felt a disproportionate risk/reward with AHM. AHM originates the loan and sells them to 1 of 4 major buyers, like Wells before the borrower EVER receives their 1st payment. AHM made a lot of money doing that - goto Google finance and see. All they were was a glorified mortgage broker. Wells took the stance in a troubled market of mitigating risks and maximizing rewards. Is AHM going to payback Wells for any defaults, no. Because they they are worthless without Wells, JP Morgan, etc....time will tell. Before we think that there is a spill over, lets wait and see. AHM is merely a conduit, a pass through if you will. Friends of mine at Wells Fargo, a major buyer of AHM paper, explained to us that they felt a disproportionate risk/reward with AHM.
AHM originates the loan and sells them to 1 of 4 major buyers, like Wells before the borrower EVER receives their 1st payment. AHM made a lot of money doing that - goto Google finance and see. All they were was a glorified mortgage broker.
Wells took the stance in a troubled market of mitigating risks and maximizing rewards. Is AHM going to payback Wells for any defaults, no. Because they they are worthless without Wells, JP Morgan, etc….time will tell.

]]> http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-10425 Thu, 02 Aug 2007 13:45:58 +0000 http://www.tradersnarrative.com/charts-of-the-sub-prime-contagion-1211.html#comment-10425 [...] Scapegoat: Sub-Prime Mortgates Everytime the market falls, a convenient reason is trotted out to explain it in a sound bite. Today’s is the subprime mortgage market. In the spring it was China’s fault. They sneezed. We caught a cold. While it is ugly out there in the subprime market, risk profiles are returning to more normal levels. [...] […] Scapegoat: Sub-Prime Mortgates Everytime the market falls, a convenient reason is trotted out to explain it in a sound bite. Today’s is the subprime mortgage market. In the spring it was China’s fault. They sneezed. We caught a cold. While it is ugly out there in the subprime market, risk profiles are returning to more normal levels. […]

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