updates --  trotsky, 15:06:27 03/22/12 Thu
Stress Test - FHA, by Ramsey Su
Ramsey looks at FHA loans, which have become an ever greater percentage of mortgage loans since the subprime debacle. It turns out that what used to be the time period during which a loan previously was regarded as 'seasoned', these days is the time it takes for it to become delinquent. All FHA loans since 2006 are now underwater, using national averages as the benchmark. And yet, in spite of higher costs and the scary delinquency record, FHA loans have captured huge market share because they are often the only financing option open to people.
acting-man.com
Spain Remains in Focus, plus Credit Market Charts
Yesterday Citigroup's chief economist Willem Buiter reminded everyone in a Bloomberg interview that Spain's fiscal and economic situation remains dire. He sees Spain as the greatest risk factor in the euro area right now. Along similar lines, he mentioned that Portugal, Greece and Ireland will likely also require further bailouts. The markets have moved from being scared to death about the euro area crisis to completely ignoring it in the space of a few weeks, but that does not mean the problems have gone away. We have seen such periods of calm before after all. The question is, what will the eurocracy do as an encore if the LTRO induced pause in the crisis ends?
Credit market charts updated (usual suspects: CDS, bond yields, basis swaps). CDS on Spain are at a new high for the move since they began rising again from their early February lows.
acting-man.com |
