Tuesday, June 24, 2008

quote of the day

"If the housing market does slow down," Bernanke said, "we'll want to see how strong the subprime mortgage market is and whether or not we'll see any problems in that market."

Just to remind you who got your back, sonny.

7 comments:

Greenie said...

He said that today??? Or June 2007?

MTGSPY said...

Jun 2007.

13thgeneration said...

Just curious, if you can say, how is remittance day going? I can't imagine there's much sunshine in those reports, but hopefully I'll be wrong? TIA.

MTGSPY said...

Good question 13th!

Today is a historic moment. The first CASHFLOW losses happen on ABX bonds ( the floating payment side of the swap is paying cash for the first time ).

Moment of silence please.

13thgeneration said...

Thank you, I am silent. I am assuming this is liquidation/default, not prepayment.

MTGSPY said...

correct, this is defaulted material/dq pipelines. In 3 months we will be seing 50-70% of the BBB taking complete/partial writedown depending on tranche size. Those triggers mean nothing at this point.

13thgeneration said...

Hopefully my brother will send me his trumpet now, I think I need to learn how to play it.

Thank you.