The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (4739)	1/11/2004 11:40:33 AM
From: Ramsey Su	Read Replies (2) of 110194

I don't know who are buying these ABS from subprime originators, only suggesting that there appears to be no shortage of buyers. Referring back to a conversation I had last week with a couple of brokers who specialize in subprime, they led me to believe that "everyone" will take the loans off their hands. These are not ABS and as you said, these are the big banks that are basically deep in subprime, probably via their own staff as well as mortgage brokers. These subprime loans have no mortgage insurance. So aside from some sense of security because the collateral is supposedly the equity of a real property, aren't these just basically non-secured credit if they are making 100% loans? Furthermore, these guys opine that they and the buyers of the junk loans they originated understand the risk well. Afterall, they have been in the business for 8 years and have seen it all!!!!! Things are not adding up. I am hoping to get some info from MTG report tomorrow that may reveal the health of the industry. I am short a little of MTG, PMI and RDN myself, just can't resist. <gggg>

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