from the news release : one of the few bright spots.
"Transportation/Public Utilities and
Finance/Insurance/Real Estate hiring managers foresee improved job
prospects during the spring months."
With the survey likely carried out before the recent mess in the stock market and the disaster unfolding in the mortgage market, you can pretty much count on it that the FIRE sector will be revising this optimism in the next survey and wont be carrying out its q1 intentions in q2.
"Accredited Home May Raise Money, Seek Debt Waivers (Update4)
By Philip Lagerkranser
March 13 (Bloomberg) -- Accredited Home Lenders Holding Co., a U.S. lender to people with poor credit, said it will seek debt waivers and try to raise new funds after creditors asked for more money to cover the risk of defaults.
The company will cut jobs to reduce costs and may delay filing its annual report, it said in a statement distributed by Business Wire. San Diego-based Accredited has paid about $190 million in margin calls this year, with two-thirds of that since Feb. 15, according to the release."
Yup. Accredited seems likely to be next. It was exceptionally unprofitable for the 4th qtr, and it said that unprofitability was due to the business environment rather than one-time circumstances. I am quite sure its warehouse line covenants include a requirement to make money at least once every two quarters. No one's going to hand out that type of money indefinitely to an underwater borrower.
The Manpower survey agrees with what I have found privately. Big firms seem to be planning to cut jobs or to severely restrain hiring in the first half of 2007.
From that Bloomberg article on CDOs.
" The Dallas Police and Fire Pension Fund invested in its first CDO about two years ago to boost returns, according to Richard Tettament, administrator of the $3.2 billion fund.
We were beefing up our risk and we were hoping for a greater return,'' Tettament said in an interview from his Dallas office.We have an unfunded liability to pay off.''
Tettament said he isn't sure what type of collateral backs the CDO, though he thinks returns exceeded 20 percent last year. "
....
Investors in CDOs have had little to worry about. February was the first time in more than nine years that no speculative- grade companies defaulted, Moody's said last week.
Sounds like subprime just before before its crash. Folks not knowing what is in their CDO and easy money allowing for refinancing.
Geoff, when 1 out of 50 people in CA have RE licenses, why would there be any need to cut back? Why, you could double the number of licenses and only 4% of the population would be Realtors! 96% left to buy, and everyone can keep drinking the kool aid as real estate goes up forever. It's the new paradigm.
from the news release : one of the few bright spots.
"Transportation/Public Utilities and
Finance/Insurance/Real Estate hiring managers foresee improved job
prospects during the spring months."
With the survey likely carried out before the recent mess in the stock market and the disaster unfolding in the mortgage market, you can pretty much count on it that the FIRE sector will be revising this optimism in the next survey and wont be carrying out its q1 intentions in q2.
http://www.oceanfirstonline.com/site/earn_rev.pdf
OT: I like how they get into subprime at the very last moment just in time to catch the EPD's
FunnyMoney is still out there chasing customers:
Mortgage Grapevine: Any lenders that will do a second for a borrower with a 588 fico and 30x5 rolling lates
No liqudity Crunch so far.
OT: Goes along with the credit derivatives post
CDOs May Bring Subprime-Like Bust for Buyouts, Junk-Rated Debt
CDOs May Bring Subprime-Like Bust for LBOs, Junk Debt (Update3) - Bloomberg.com
Uh oh--is LEND next?
Accredited Shares Fall, New Century Trading Suspended (Update6) - Bloomberg.com
"Accredited Home May Raise Money, Seek Debt Waivers (Update4)
By Philip Lagerkranser
March 13 (Bloomberg) -- Accredited Home Lenders Holding Co., a U.S. lender to people with poor credit, said it will seek debt waivers and try to raise new funds after creditors asked for more money to cover the risk of defaults.
The company will cut jobs to reduce costs and may delay filing its annual report, it said in a statement distributed by Business Wire. San Diego-based Accredited has paid about $190 million in margin calls this year, with two-thirds of that since Feb. 15, according to the release."
Yup. Accredited seems likely to be next. It was exceptionally unprofitable for the 4th qtr, and it said that unprofitability was due to the business environment rather than one-time circumstances. I am quite sure its warehouse line covenants include a requirement to make money at least once every two quarters. No one's going to hand out that type of money indefinitely to an underwater borrower.
The Manpower survey agrees with what I have found privately. Big firms seem to be planning to cut jobs or to severely restrain hiring in the first half of 2007.
From that Bloomberg article on CDOs.
" The Dallas Police and Fire Pension Fund invested in its first CDO about two years ago to boost returns, according to Richard Tettament, administrator of the $3.2 billion fund.
We were beefing up our risk and we were hoping for a greater return,'' Tettament said in an interview from his Dallas office.We have an unfunded liability to pay off.''
Tettament said he isn't sure what type of collateral backs the CDO, though he thinks returns exceeded 20 percent last year. "
....
Investors in CDOs have had little to worry about. February was the first time in more than nine years that no speculative- grade companies defaulted, Moody's said last week.
Sounds like subprime just before before its crash. Folks not knowing what is in their CDO and easy money allowing for refinancing.
Geoff, when 1 out of 50 people in CA have RE licenses, why would there be any need to cut back? Why, you could double the number of licenses and only 4% of the population would be Realtors! 96% left to buy, and everyone can keep drinking the kool aid as real estate goes up forever. It's the new paradigm.
Yep. Those pension funds like having their faces ripped off alright.
The bloomberg CDO article is scary.
``We think there is a kind of a credit amnesia that is going on,'' said William Chew, managing director at S&P in New York.
Dude, like I totally don't remember last night! What happened?
Well, dude, after the strip club, we went back to the office and securitized some high yield paper.
dr. strangemoney wrote, "Dude, like I totally don't remember last night! What happened?
Well, dude, after the strip club, we went back to the office and securitized some high yield paper."
Unfortunately, that is way, way too close to the truth.
And, it's frickin hilarious.
Why do I hear echoes of this in my head :
"So the rumor's true?"
"They're (obscenity) takin' all the money back from you guys? All the money you guys stole from those poor grandmothers in California?"
"Yeah, Grandma Millie, man, but she's the one who couldn't figure out how to (obscenity) vote on the butterfly ballot."
"Yeah, now she wants her (obscenity) money back for all the power you've charged right up her (obscenity) for (obscenity) $350 a megawatt hour."