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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (46108)	11/25/2005 11:03:43 AM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

"Do you know most of these very toxic 2-28s are amortized and NOT I/Os?" I figured that one out when they were offering the 1% rates and the payment on $300k were over $900 a month even though interest expense only amounted to $250. The boost to 5% takes the payment to roughly $1600 which is a huge jump but not as much as it had started as I/O. Obviously the growing balance on loans till now has been offset by appreciation in the bubble markets. Wouldn't this really be playing itself out first in a major way in flyover country? We already had record foreclosures in Ohio and Texas before the big boost in short term rates even effected monthly payments..