Monday, March 26, 2007

Subprime lending crisis

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Fed banker plays down subprime fears

Recent problems in the risky subprime mortgage sector did not appear to have spilled over into other parts of the credit markets, Timothy Geithner, president of the Federal Reserve Bank of New York, said. - Mar 23 2007

Gillian Tett: Finding subprime’s losers

Plenty of hedge funds made right bets on subprime groups - Mar 22 2007

Fed accused of subprime ‘perfect storm’

Signs of backlash against lenders - Mar 23 2007

Spain shudders as ill winds batter US mortgages

Home loan crisis in the US are having a sobering effect in Spain - Mar 21 2007

Loan rescues Accredited Home Lenders

Farallon lends $200m to ease subprime woes - Mar 20 2007

Related content and features

Market Impact

High-risk lenders take a hit from investors

Investors punished the stocks of US companies involved in mortgage lending to risky “subprime” borrowers amid signs that the shake-out in the industry is far from over.

Market Insight: US subprime lending market woes

HSBC and New Century Financial served up a bitter pill for investors last week. News that they faced more significant difficulties than expected with their portfolios of loans to US borrowers with weak credit sent markets reeling.

Investors react sharply to news of loan risks

Investors in mortgage bonds reacted bearishly to news that HSBC and New Century Financial faced bigger-than-expected difficulties with their portfolios of loans to US borrowers with weak credit.

Fears grow over subprime loan market

Concerns over risky US mortgage lending mounted as a key indicator of credit problems hovered at record levels, another small mortgage lender failed and a big homebuilder admitted borrowers’ difficulties could damage its business.

‘Violent reaction’ to an increase in risk

Investors reacted sharply to news that HSBC and New Century Financial faced bigger than expected difficulties with their portfolios of loans.

US subprime loans face trouble

Investors have signalled trouble in store for the giant crop of US "subprime" mortgages launched this year, pushing up the prices for credit insurance that will...

FT reporting: How it started

Wall St braced for subprime collateral damage

The rapid decline of subprime lender New Century Financial has added a new sense of urgency to first quarter earnings reports due this week from Wall Street investment banks Lehman Brothers, Bear Stearns and Goldman Sachs.

Subprime mortgage meltdown intensifies

The meltdown in the giant US subprime mortgage sector gathered speed as shares in several leading lenders plunged and HSBC said it would take at least two years to fix its portfolio of bad home loans in the US.

High-risk loans revealing shaky foundations

In the closing days of last year, something came un-stuck in a small but important corner of the US mortgage market, causing pain for investors and resulting in several mortgage lenders shutting their doors. The problem was that for some home buyers last year, it had become too easy to get a mortgage.

Downgrades hit ‘subprime’ mortgage bonds

Bonds backed by risky US “subprime” mortgages were downgraded in record numbers in the fourth quarter, Fitch Ratings said.

James Altucher: Why the truth can be worth drilling down for

Sometimes all you have to do is ask. And sometimes it’s important to ask more and drill down a little to get to the truth. But most people don’t. Particularly in the hedge fund world.

Regulators plan tightening of subprime loans

US financial regulators proposed new guidelines for the troubled subprime mortgage industry, saying they were worried borrowers did not understand the risks of the loans

Mortgage debt is not safe as houses

Investors in mortgage-backed bonds and other complex debt products could be left nursing substantial losses as troubles grow in the risky US subprime mortgage market.

Subprime lenders act to cut defaults

The giant US subprime mortgage business is displaying a new-found caution with lenders tightening loan standards and cutting ties to overly aggressive brokers.

Cracks start to appear in credit pipe

This is turning out to be a very happy bonus season from one end of the global street to the other. Whatever the real source of excess global liquidity, it has led to some fat cheques being written by the compensation committees at banks and dealers, writes John Dizard.

Hedge funds home in on housing

Growing numbers of hedge funds have placed bets on a slump in the US housing sector in recent weeks, weakening a key index tied to the performance of subprime mortgages, according to dealers.

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