Sunday, July 13, 2008

Alt A loan performance

Here is a screen capture from the Bloomberg Terminal, of a particular batch of securitized Alt A mortgage loans made by Washington Mutual.



So what does all those numbers mean?

I think the key trend is if you look at the data for every month.

Especially the REO percentage (REO means the bank has already taken back the house). Went from 0.04% of the entire portfolio in Nov 07 to 10.48% in June 08. Amazing.

And look at the credit score of the applicants. They were 704 points. Supposedly very safe... umm...
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2 comments:

  1. HK InvestorThu Jul 17, 03:27:00 pm GMT+8

    Can you tell me where you find the page on Bloomberg? would like to take a look as well.

    The scary part to me is not the REO since those are losses already. Take a look at the 30 and 60 days. They are still going up and not slowing down. Before the credit cycle stops, those will first slow down and then the cycle peaks. That is just how credit loss curve works. We probably still have some ways to go.

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  2. pakmanThu Jul 17, 06:27:00 pm GMT+8

    I think you probably have to use the help function.

    "WMALT 2007-OC1 Help"

    but there are a lot of such securitze bonds monitoring pages on Bloomberg. Bonds... Thats what they were born to do.

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