Skip navigation
Watchlist Sponsored By :


Current DateTime: 01:46:48 16 Nov 2009
LinksList Documentid: 24355697

FEATURED QUIZZES


Current DateTime: 01:46:48 16 Nov 2009
LinksList Documentid: 33793611
  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

  • The Many Myths of Coca-Cola

      Can you tell which statements are true, and which ones are just rumors?

  • Think You Understand Markets?

      We've selected some questions from the Financial Industry Regulatory Authority's test of investor knowledge. See how you do ...


Current DateTime: 01:46:48 16 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Cost to Insure Countrywide, Bear Stearns Debt Jumps
By: Reuters | 06 Aug 2007 | 02:47 PM ET
Text Size

The cost to insure the debt of mortgage lender Countrywide Financial and U.S. brokers with exposure to mortgages, including Bear Stearns, surged on Monday.

Credit default swaps on Countrywide's home-loan unit Countrywide Home Loans, its most actively traded swap, rose by around 100 basis points to 445 basis points, or $445,000 per year for five years to insure $10 million in debt, according to data from CMA DataVision.

Debt-protection costs of Countrywide, the largest U.S. mortgage lender, have doubled from 210 basis points on Thursday, on accelerating concerns about profits as mortgage borrowers struggle with payments.

Mortgage Burn: Financial Firms
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

American Home Mortgage Investment, once the 10th largest home lender in the United States, filed for bankruptcy protection on Monday.

Last week, Countrywide posted a 33 percent decline in quarterly profit and slashed its 2007 forecast as more homeowners fell behind on payments.

Credit default swaps on mortgage insurer Radian Group also leaped 100 basis points on Monday, to around 500 basis points.

Radian's credit default swap spreads have more than doubled from around 182 basis points last Monday, as concerns about home loans grew, and on increasing speculation that Radian's planned merger with MGIC Investment may fall through.

Bear Stearns' credit default swap spreads also widened around 40 basis points to 200 basis points.

Warren Spector, Bear Stearns' co-president and co-chief operating officer, resigned on Sunday, two days after the bank said in a conference call that it was weathering the worst storm in the financial markets in more than 20 years.

Mortgage Burn: Homebuilders
Loading...
Loading...
Loading...
Loading...
Loading...

Lehman Brothers' swaps were around 25 basis points wider at 155 basis points, and Goldman Sachs' swaps were around 15 basis points wider at 106 basis points, according to data provided by CMA DataVision.

Credit default swaps on U.S. home builders were also pushed wider in line with weakness in mortgage-related debt.

The cost to insure the debt of D.R. Horton, Lennar and Toll Brothers all rose by around 30 basis points -- to 410 basis points, 261 basis points and 265 basis points respectively -- CMA data showed.

Swap spreads on KB Homes and Meritage Homes also were around 40 basis points wider, at 545 basis points and 725 basis points, respectively.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Warren Buffett and Bill Gates spoke to Columbia students, and Buffett made the students a startling offer.
  • Brian L. Roberts
  • For the chief of cable company Comcast, growth has been about making deals – generally very large deals.
  • Some companies may start using insurance to shift carbon risk from their balance sheets to maybe... yours?
  • The president and founder of Genesis Today wants to improve America’s health, and thinks Wal-Mart can help.
  • Switzerland's privacy watchdog is taking legal action to force Google to make changes to its Street View service.
ADD COMMENTS
Remaining characters


Current DateTime: 01:43:39 16 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:38:25 16 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:38:26 16 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:38:26 16 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters