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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 (52139)	1/31/2006 11:55:16 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

I see no mention in CFC's 8-K of delinquencies or nonaccurals. May have to wait on the 10-Q for that. I'll see if they mention it in the call. This is illustrative however: Net interest margins in the fourth quarter, as well as the prior quarter and full year, were negatively affected by low introductory rates, or ‘teasers,’ on newly produced pay-option loans, as well as by the lag period between the reset date on certain loans and actual changes in the underlying index rate of the same loans, commonly called the ‘lag effect.’ In the fourth quarter, the teaser effect depressed net interest margins by 16 basis points, and the lag effect contributed another 31 basis points. This was an improvement over the third quarter, however, when the effect of teaser rates was detrimental by 27 basis points, and the lag effect by a further 28 basis points.