It seems YEN action is the start of the great unwind of Aug/Sep 2007.
I expect BOJ to play a major role selling YENs.
But let us not forget all the Japanese housewifes that invested in yield in NZD and AUD and also the fact that China maybe buying YEN to counter the BOJ.
Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert
By Mark Gilbert
Aug. 16 (Bloomberg) -- Dear investor, we'd like to take this opportunity to update you on the recent performance of our hedge fund, Short-Term Capital Mismanagement LLP.
As you know, market selection for the entire fund is guided by a proprietary investing tool we like to call ``a dartboard.'' Once the asset classes are decided, individual security selections are generated by digitizing our unique hexagonal cuboid models.
Unfortunately, it transpires that our hexagonal cuboids are not as unique as we thought. Hundreds of other hedge funds possess identical dice. The technical term for this is a crowded trade.'' You may also see it referred to asclimbing on a bandwagon already headed for the wall.''
As our alpha generation collapses, our beta has turned negative, our delta hedging has gone toxic and, trust me, you do not want to hear about our gamma. We can't even find our epsilons in the dark with both hands.
You will appreciate that accurate pricing is essential for evaluating our investment strategies. This has proven to be extremely challenging in recent days. Previously, we have relied on Bob, the sales guy at Hokey-Cokey Bank. Bob assured us the securities were still worth 100 percent of face value, so everything was cool. Bob sold the collateralized debt obligations to us in the first place, so he knows what he's talking about.
Bob, however, appears to have had a nervous breakdown, judging by the maniacal laughter that greeted our requests for price verification this week. Our efforts to implement an in- house CDO valuation framework, using a technique the ancients knew as ``making things up,'' proved unsatisfactory.
Where's the Bid?
Currently, all of the portfolios we manage are undergoing a rigorous screening known as crossing our fingers and praying that we don't have to try and find a bid in the market.'' This is supplemented by a cross-market statistical analysis originally developed by the U.S. military calleddon't ask, don't tell.'' This ``unmarking-to-unmarket'' procedure has been the benchmark for the hedge-fund industry for the past, ooh, 72 hours. ... Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert - Bloomberg.com
Press Release
California Foreclosure Sales Reach $12 Billion
In First Half Of 2007: Up 95% From January To June
Discovery Bay, CA, July 10, 2007 - ForeclosureRadar™ today released its June 2007 California Foreclosure Report.
A total of 6,960 homes were sold at auction in June with a loan value of $2.83 Billion dollars in California. Riverside County had the highest number of foreclosure sales at 1,093 properties and $523M in loan value. Los Angeles County was second in terms of volume, but after adjusting for population, ranked 34th in the State. Yuba, Sacramento and San Joaquin Counties ranked 2nd, 3rd and 4th highest respectively with Marin County having the lowest foreclosure rate in California. Foreclosures now represent 16% of all new and resale home sales in the state.
According to ForeclosureRadar founder Sean O'Toole, "Lenders are building a significant REO inventory. Since January 1, 2007, a total of 29,696 California properties have been returned to the lender for an astonishing total loan value of $12 Billion dollars. This is unprecedented." In June alone 6,552 properties were returned to the lender for a total of $2.69 Billion dollars.
I like that quote of the day. I think things like that will actually help my business!
It seems YEN action is the start of the great unwind of Aug/Sep 2007.
I expect BOJ to play a major role selling YENs.
But let us not forget all the Japanese housewifes that invested in yield in NZD and AUD and also the fact that China maybe buying YEN to counter the BOJ.
So now its the borrower who brings in the underwriter to test the lender's ability to perform...
Breaking on wsj.com now:
Countrywide said it is drawing on a $11.5 billion credit facility to supplement its funding liquidity position. Full article shortly.
"Hi, I'm here on a due diligence engagement. Can you direct me to your file room?"
"Oh, are you with the FDIC?"
"No, I'm with Bob and Sue Ellen."
Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert
By Mark Gilbert
Aug. 16 (Bloomberg) -- Dear investor, we'd like to take this opportunity to update you on the recent performance of our hedge fund, Short-Term Capital Mismanagement LLP.
As you know, market selection for the entire fund is guided by a proprietary investing tool we like to call ``a dartboard.'' Once the asset classes are decided, individual security selections are generated by digitizing our unique hexagonal cuboid models.
Unfortunately, it transpires that our hexagonal cuboids are not as unique as we thought. Hundreds of other hedge funds possess identical dice. The technical term for this is a crowded trade.'' You may also see it referred to asclimbing on a bandwagon already headed for the wall.''
As our alpha generation collapses, our beta has turned negative, our delta hedging has gone toxic and, trust me, you do not want to hear about our gamma. We can't even find our epsilons in the dark with both hands.
You will appreciate that accurate pricing is essential for evaluating our investment strategies. This has proven to be extremely challenging in recent days. Previously, we have relied on Bob, the sales guy at Hokey-Cokey Bank. Bob assured us the securities were still worth 100 percent of face value, so everything was cool. Bob sold the collateralized debt obligations to us in the first place, so he knows what he's talking about.
Bob, however, appears to have had a nervous breakdown, judging by the maniacal laughter that greeted our requests for price verification this week. Our efforts to implement an in- house CDO valuation framework, using a technique the ancients knew as ``making things up,'' proved unsatisfactory.
Where's the Bid?
Currently, all of the portfolios we manage are undergoing a rigorous screening known as crossing our fingers and praying that we don't have to try and find a bid in the market.'' This is supplemented by a cross-market statistical analysis originally developed by the U.S. military calleddon't ask, don't tell.'' This ``unmarking-to-unmarket'' procedure has been the benchmark for the hedge-fund industry for the past, ooh, 72 hours. ...
Hedge-Fund Guy Atones for His Subprime Bond Sins: Mark Gilbert - Bloomberg.com
watch this guy teach you how to play hardball with your lender (well, not really)...this is what happens when you type "mortgage" into youtube:
YouTube
- How to Read A Mortgage Rate Sheet - Part 1
Effective Fed Funds below target rate.
- Bloomberg.com
I just had to go get my dictionary... (folderol)
Who cares if the interest rate is 21%? If you can survive till my loan is closed, we've got a deal!
Tanta,
Any thoughts on this?
Press Release
California Foreclosure Sales Reach $12 Billion
In First Half Of 2007: Up 95% From January To June
Discovery Bay, CA, July 10, 2007 - ForeclosureRadar™ today released its June 2007 California Foreclosure Report.
A total of 6,960 homes were sold at auction in June with a loan value of $2.83 Billion dollars in California. Riverside County had the highest number of foreclosure sales at 1,093 properties and $523M in loan value. Los Angeles County was second in terms of volume, but after adjusting for population, ranked 34th in the State. Yuba, Sacramento and San Joaquin Counties ranked 2nd, 3rd and 4th highest respectively with Marin County having the lowest foreclosure rate in California. Foreclosures now represent 16% of all new and resale home sales in the state.
According to ForeclosureRadar founder Sean O'Toole, "Lenders are building a significant REO inventory. Since January 1, 2007, a total of 29,696 California properties have been returned to the lender for an astonishing total loan value of $12 Billion dollars. This is unprecedented." In June alone 6,552 properties were returned to the lender for a total of $2.69 Billion dollars.
Ah; anonymous was not raised on the classics:
"Such folderol and fiddle-dee-dee, IMPOSSIBLE,
Im-poss-i-ble
For the world is full of zanies and fools
Who don't believe in sensible rules"
What we didn't know is that most of those people run loan-origination divisions.
oh come on. with the proliferation of correspondent lenders, this was to be expected.
big shocker - you want something done right go to the big boys.
Tanta, pls explain
What happens to folks like me who have Countrywide mortgages? If they go under do they get sold off to someone else?
Is it possible to buy your own mortgage before it is sold off? Would you want to?
I'm not sure building my house could get any more stressful. I'm closing on my Alt-A mortgage on Sept 5th.