A sharp downturn in subprime MBS issuance pulled overall non-agency production down in the second quarter of 2007 as the market continues to adjust to a new regulatory and business environment in the primary mortgage market. According to... [Includes four charts]
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Standard & Poor’s this week placed more than 600 classes of subprime MBS on CreditWatch negative and toughened its rating standards in light of further deterioration in 2006 vintage deals. S&P analyst Susan Barnes said most of the securities on CreditWatch will be...
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Wall Street is gearing up for a possible confrontation with states that are considering tough regulatory and legislative responses to the subprime market problems and the rising foreclosure rates. These different initiatives have common features in that they all...
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The Federal Reserve and Treasury Department this week said that while recent problems involving hedge fund investment in subprime MBS are troubling, the regulators are not overly concerned. At a hearing on hedge funds before the House Financial Services...
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The stock prices of a number of big European banks have taken a pounding since late May after rebounding from lows in March as spooked investors worry about the lenders’ degree of exposure to the U.S. subprime market woes. Three groups of European banks have...
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The forthcoming Basel 1A capital framework is expected to benefit regional U.S. banks that are heavily engaged in the prime mortgage sector, according to a new report by Fitch Ratings. Entitled “Basel 1A: A Fork in the Road,” the report advances the view that...
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