GLG News by Subprime Mortgage Experts (US)

Joseph SmithPresident and CEODefault Mitigation Management

Risk - Reward investments/endeavors require active investors

December 31, 2007

Analysis of:Hedge funds assess exposure to banks | www.ft.com

While it is true that investors risk money on potential returns and soundness of the underlying assets, it is also true that both the packager and the investor have analytical staff whose job it is to understand the investment. The underlying collateral of mortgages does have the value of the stream of mortgagors' payments; the key is that the stream be maximized to create the fullest return. Once the value of the stream is established then the pool will have worth and a basis for a market value. Instead of sitting back and bemoaning the investment banks who merely provided an investment option with very clear indications of the types of loans in the prospectus. Belittle the society that endorses short cuts to sound business.

Joseph SmithPresident and CEODefault Mitigation Management

Law of Unintended Consequences is at work again.

December 10, 2007

Analysis of:Llenders Agree to Freeze Rates on Some Loans | www.nytimes.com

Potential Lawsuits, repurchase demands and flawed collateral documentation will cause many more problems than the intended solution will solve. The limited nature of the eligible loans will be far less than the 1,000,000 loans identified by the administration. The parties making the agreement do not have the right to do so.

Joseph SmithPresident and CEODefault Mitigation Management

HSBC as a Bellweather Indicator

November 13, 2007

Analysis of:HSBC, the Subprime Seer:Sanguine View Isn't Likely | online.wsj.com

HSBC's indications do not necessarily indicate the extent of change in the market. Since HSBC is very forthcoming with their news, they do not capture some lenders who have not been in the past. These other lenders, some of whom are significantly larger than HSBC, have been deferring some wirte offs and will take larger positions of loss going forward. HSBC does indicate the trend but not the severity.

Maureen BoltonPrincipalGlobal Capital Access

Liquidity Sponge Could Be Full After Last Week's Leveraged Loan Sales

October 15, 2007

Analysis of:Debt on Sale: Banks Grease | online.wsj.com

This article is important because it reveals the current efforts of banks to sell off leveraged loans and contrasts such efforts with past sales.  The fact that banks are offering price guarantees and discounts to buyers of loans related to buyouts of recession-proof companies is an indication that getting rid of the enormous, committed leveraged loan pipeline will be much more difficult than anticipated. In addition to detailing the type of terms the banks were offering sellers, the article also contains a terrific illustration of the  current road show environment  -still crowded- and attendees -KKR attended and bought loans related to its very own deal-resulting in the borrower merging with the lender. 

Joe GarrettPrincipal ConsultantGarrett, Watts & Co

China investment in U.S. bank first of many yet to come

October 15, 2007

Analysis of:Chinese bank in landmark US investment | www.ft.com

Asian-American banks, most of which are in California, are very cheap, small enough to be easily acquired, and will likely be acquisitions targets for Chinese banks looking to diversify and expand.  The biggest of these banks are UCBH, in which an investment has just been announced, and East-West Bank, with market caps of $1.9 billion and $2.2 billion respectively.  They get smaller from here, the point being that these would be bite-sized deals. 

Joseph SmithPresident and CEODefault Mitigation Management

Hidden losses to come

October 10, 2007

Analysis of:Unlikely Mortgage Winner | online.wsj.com

The problem with programs of this type is flight from debt. For many of the lenders for which we work, we can not find a high number of these foriegn buyers. if they have any problem with their financial situation they leave the country. Numerous principal residences are vacant and we have tracked them to housing scams where the refinance or purchase was related and inflated.

Maureen BoltonPrincipalGlobal Capital Access

Once Again, UBS Gets Hurt By Following the Herd

October 4, 2007

Analysis of:UBS falls victim to credit squeeze | www.ft.com

This article is important not only because it announces a US$1.3 billion write-down of UBS' fixed income portfolio, but because it parallels the situation with that of Bear Stearns' (huge write-downs followed by the "departure" of a key executive) and questions whether there are more of such "disclosures" in the coming week as Merrill Lynch, Deutsche Bank and others announce their third quarter earnings.

Joe GarrettPrincipal ConsultantGarrett, Watts & Co

Kazahk banking system relatively heathy

October 1, 2007

Analysis of:Could Kazakhstan suffer a credit crisis? | www.financeasia.com

There just was, and to an extent still is, a global credit crisis, and financial system in Kazahkstan seems to have weathered it.

Maureen BoltonPrincipalGlobal Capital Access

Will China's rich enrich Morgan Stanley

September 25, 2007

Analysis of:Morgan Stanley to buy stake in China's Jutian Fund | www.reuters.com

This article announcing Morgan Stanley's plans to invest in Jutian Fund Management is important because it reveals another component of Morgan Stanley's investment strategy.   It also indicates that wealthy Chinese may be a more lucrative target for foreign investors, as opposed to the potential billion retail accounts.

Maureen BoltonPrincipalGlobal Capital Access

Carribean for Customer Service;India for Intelligence

September 24, 2007

Analysis of:Forget India; Call Centers Boom in Caribbean | abcnews.go.com

This article is important because it describes the nearly five-fold rise in call center businesses in Carribean countries such as Jamaica and the Dominican Republic.  The article also details the positive economic impact that opening one call center can have on such small countries.  Finally, an optimistic prediction that such call centers can eventually evolve into more profitable work, such as creating web sites or assisting with IT problems is made along with the consequent mpact on the islands' employment levels and wages.

Previous Page : 12345678910Next41 to 50 of 91