daddyo: If you're still reading:
You posted about looking the asset up on Bloomberg and had scenarios showing it would not last till thanksgiving. Some of us wouldn't mind seeing more details.

As flies to wanton boys are toxic bonds to NPR (and the shorts).

C

the pdf was the details. i couldn't figure out the hoocood white paper section, so i sent it to CR.

Great! Werner's little brother is back.

If HAMP were designed to help homeowners rather than banks, it would exempt any applicant who is already protected from foreclosure by a homestead exemption.

Also, it would be available equally to those who might own free and clear but are facing tax lien foreclosure because of the same circumstances (reduced income, medical bills). [The bank might have already been paid off in full so who cares? The local government's problem...]

Don't see any mention of these issues on the website.

From the PDF:

43% of the loans were cash-out (translation: living on bubble equity)
100% of the loans are negative-amortization (translation: could never afford the loan in the first place)

I wonder how many were ninja loans as well. If anyone has the ability to I'd love to know who bought this issue originally. What a securitized pile of Somehow I'm sure the originator fully disclosed the potential risks to the original buyer, or rather just paid off the rating agencies. Even after the collapse I still can't believe anyone would ever buy this crap at par.

Matty wrote:

Great! Werner's little brother is back.

He's awfully noisy, that's for sure. But I'm not yet convinced he isn't just an automated spam-bot.

"Great! Werner's little brother is back. "

Well, I love you too but it will cost you!

daddyo wrote:

100% Countrywide deal.

87% low doc, 13% full doc.

Is there a good definition for "low doc"? We were debating that a few weeks ago.

ghostface is probably better equipped to answer the low-doc question. i'm actually a CMBS/ABS guy who knows enough to get in trouble in RMBS.

Calvinbonds FTW!

Hey LoserBeachBum,

Thanks for the Greek bail out.

Wall Street Lobbyists Sinking Washington, Obama, Dodd: $400 Million to Kill Financial Reforms & Destroy America. Warning, They Are Winning The War! « Wall Street Warzone

I am assuming that this tranche was not one of the AAA rated ones.
If I'm wrong about that, the entire pension system is toast.

Its one of the lower tranches but its also from 2005, not even the worst of the bubble years and more than 85% of the remaining loans exceed the original balance. I can't see a lot of those performing. Especially considering the amount of 'low doc' loans Daddyo stated. Its impressive anyone could put this pool together and sell it to someone with a straight face and say it was a safe investment.

OK, so it's hard for those of us (or at least: me) who don't look at bloomberg daily to parse the pics fully. I'll have more time later.

But still, I don't think I've seen the tranches laid out plainly like that, along with moody's & S&P ratings. (I assume that they only get 2 agencies to rate for cost reasons? And because (let's face it) they never differ anyway?)

Someone should send this over to the NPR guys.

Great post.

sm_landlord wrote:

I am assuming that this tranche was not one of the AAA rated ones.
If I'm wrong about that, the entire pension system is toast.

According to the pdf tranche B6, second in line rated CC with B7 currently taking losses.

That said, AAA don't mean what it is supposed to mean. The least crazy inmate in the asylum would earn a AAA and still be crazy.

1 currency now -yogi wrote:
I sure hope those savvy bankers that dumped a trillion plus of junk on the Fed paid themselves big bonuses this year.
There's no need to be savvy, or even intelligent, when you have captured a government. There is a need to be inconspicuous however... FAIL.

Here the conditions on rating from the original prospectus:

http://www.ise.ie/debt_documents/Gstreet_2113.pdf

Shows A3 and A- ratings.

Just barely made it in time for the BFF poll. Does Paris Hilton post here?

daddyo wrote:

The original AAA classes will likely take losses, but when you factor in the interest, they actually have positive yield, albeit small (2-3% on a 10 year bond).

Even though the AAA classes in this case will have a positive yield after taking losses it still means potential problems for all of the pension funds and insurance companies and others chasing yield. They bought these tranches to increase yield to fund future obligations, which isn't working out how they had hoped. All your yield belongs to us

daddyo wrote:

This deal was a fairly standard alt-a non-agency deal

daddyo
you have my thanks as well, especially for the summaries translated from BBergish into English, and to CR as always

Early failure. Another NY bank.
Park Avenue Bank.

BFF is off Park Avenue Bank NY NY
Another NY NY for Sheila

Vonbek777 wrote:

For you sun watchers...
Solar 'Current of Fire' Speeds Up

So the Sun is experiencing global warming?

LBB: Too much Ayinger, dude!

EHP - Servicing advances are collected, you have to hit the remittance reports for those. Remittance reports make my head hurt. Servicers make good money on advances and other fees, and they take their cut before anyone else gets a penny. That's why everyone is scrambling over buying up the servicers.

You wouldn't boot a servicer after the deal was done, this was all pre-closing. So before you launch a deal, you do all the rating work, including selecting the agencies who will rate it. Generally, the agencies rated all the bonds the same, but they would disagree over enhancement levels, which are how much protection each tranche has from losses. If you didn't like the levels of one of the agencies, you would politely tell them they would not be rating the deal. This is the "rating shopping" people always talk about.

Bank Failure #28: Park Avenue Bank, New York, New York

Well.

Somebody just tried to steal $14,750 from my trust account.

My bank yanked the money back.

Citi apparently took the loss.

No kidding.

First time anything like this has ever happened.

The phony check had my former address on it.

"LoserBeachBum - What do you see happening over in Asia, or multinational-land right now? "

My children will know everything about sex before they hit 12. I am liberal and I am here to kill you..freshwater Americans. Waiting just for an excuse to enroll... to kill any shithead against abortion.

You might want to check that American dictionary again. Liberal is not interchangeable with

dryfly wrote:

nothing but useless trivia

As an absent minded philosopher...I see most of mankind's pursuit of knowledge in this light. Invest in both.

Very sneaky...I have to retool my sensors to better detect. Course my head is still from the above discourse...so I am not working on all afterburners right now anyway. Maybe I need some mountain dew.