Subprime
By Bob
In their Daily email, FierceFinance has a nice roundup of stories concerning investment banks exposure to this sector:
Here's an article on New Century. It's an Orance County company that I looked into a few years ago and gave a pass. The subprime market always blows up, though this time seems to be bigger than normal. When I was looking at New Century, I laughed at the message board full of people incredibly naive about the market they were investing in. Of course, the news out yesterday that foreclosure rates skyrocket should come as no suprise to those following the data. If you are a renter, you are in the best shape in a decade. That last link is interesting as it shows that the housing market is responsible for any excess debt. Also, check out this data which shows pretty much the same thing that the economy overall looks good but it's the residential market where writeoffs and delingquencies are above historic lows.
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