Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (50200)	1/19/2006 10:26:54 AM
From: shades	Respond to of 110194

*DJ Freddie Mac $3B Reference REMIC Yields Tsys +0.85 J Freddie Mac $3B Reference REMIC Yields Tsys +0.85 . NEW YORK (Dow Jones)--Freddie Mac priced a Reference Real Estate Mortgage Investment Conduit (REMIC) Thursday. A $3 billion tranche with a guaranteed final maturity of Dec. 15, 2013, was assigned a coupon of 5.125% and priced at 99.83984375 to yield 5.1653%, or 85 basis points over the interpolated Treasurys yield curve. The deal is backed by 6% 30-year fixed-rate mortgage bonds backed by Freddie Mac known as Gold Participation Certificates. Bear Stearns, Credit Suisse and RBS Greenwich Capital were the co-lead managers. Settlement is scheduled for Jan. 24.

To: russwinter who wrote (50200)	1/19/2006 11:58:58 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 110194

aren't FCBs typically buying the AAAAAAAAAAAA tranches? If yes, they don't really have to worry about default risk, just rate risk.

To: russwinter who wrote (50200)	1/19/2006 1:09:11 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

"Since that's the case, the real story needs to shift to the speculator (and the holder (Asian FCBs?) )of his mortgage, who is cash flow negative, and dealing (delinquencies?)with the increasing expense of carrying these speculations." I think that is the grand plan from Mr Humpty himself. More immigrants, more debts, more growth and hope it all works out in the end. Just curious if any of you guys looked back in history to previous downturns in the past 30+ years to see how many out there were pessimistic ahead of the downturn? This one at least credit, and coastal RE wise, is the biggest and baddest ever and also the first one in real time on the internet. How this one plays out will be a real doozy. No doubt some correlation to the swift plunge in NASDAQ which was the test pilot for the internet age will play out in the condo and second home markets..