Subprime Mortgages Slipping Into Default at Rapid Pace
October 8th, 2007Via: International Herald Tribune:
Subprime mortgage bonds created in the first half of 2007 contain loans that are going delinquent at the fastest rate ever, according to Moody’s Investors Service.
The average rate of “serious loan delinquencies” in the securities has been higher than 2006 bonds, Ariel Weil and Amita Shrivastava, analysts at Moody’s Investors Service, wrote in a report last week. Serious loan delinquencies are those 60 days or more past due, including properties in foreclosure or already foreclosed upon.
“It is shocking what you see,” said Kyle Bass of Hayman Advisors, a hedge fund based in Dallas that has profited from its bet that the U.S. housing market would fall. “Anything securitized in 2007 has got to have the worst collateral performance of any trust I’ve seen in my life.”
