{"id":11468,"date":"2010-07-10T00:36:53","date_gmt":"2010-07-10T04:36:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=11468"},"modified":"2010-07-10T00:36:53","modified_gmt":"2010-07-10T04:36:53","slug":"july-9-2010","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=11468","title":{"rendered":"July 9, 2010"},"content":{"rendered":"

Naturally, the poster child for the financial crisis is the American homeowner, flim-flammed into buying a house and now being foreclosed. But see Subprime mortgages: Myths and reality<\/a> for one take on this … and now it’s hitting the papers<\/a>:<\/p>\n

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.<\/p>\n

More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.<\/p>\n

By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.<\/p>\n

Though it is hard to prove, the CoreLogic data suggest that many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment.<\/p><\/blockquote>\n

One of the big problems with the US system is that, typically, mortgages are extended without recourse. Instead of layering on extra rules, as I reported Fannie Mae did on June 23<\/a>, simply charge a premium for non-recourse mortgages. Piece of cake, and one big source of problems eliminated.<\/p>\n

Low volume today, but prices did OK, with PerpetualDiscounts up 7bp and FixedResets up 5bp.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n2.80 %<\/td>\n2.88 %<\/td>\n24,323<\/td>\n20.33<\/td>\n1<\/td>\n1.2048 %<\/td>\n2,073.2<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n1.1009 %<\/td>\n3,133.7<\/td>\n<\/tr>\n
Floater<\/td>\n2.30 %<\/td>\n1.97 %<\/td>\n45,062<\/td>\n22.47<\/td>\n4<\/td>\n1.1009 %<\/td>\n2,233.5<\/td>\n<\/tr>\n
OpRet<\/td>\n4.88 %<\/td>\n2.20 %<\/td>\n81,841<\/td>\n0.08<\/td>\n11<\/td>\n-0.0035 %<\/td>\n2,341.6<\/td>\n<\/tr>\n
SplitShare<\/td>\n6.34 %<\/td>\n6.23 %<\/td>\n85,027<\/td>\n3.44<\/td>\n2<\/td>\n0.6606 %<\/td>\n2,185.9<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0035 %<\/td>\n2,141.2<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.97 %<\/td>\n5.62 %<\/td>\n116,382<\/td>\n1.84<\/td>\n4<\/td>\n0.0000 %<\/td>\n1,919.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.91 %<\/td>\n5.95 %<\/td>\n179,872<\/td>\n13.99<\/td>\n73<\/td>\n0.0674 %<\/td>\n1,827.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.36 %<\/td>\n3.72 %<\/td>\n313,229<\/td>\n3.49<\/td>\n47<\/td>\n0.0478 %<\/td>\n2,204.0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.J<\/td>\nFixedReset<\/td>\n-1.01 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.55
\nBid-YTW : 4.18 %<\/td>\n<\/tr>\n
BNA.PR.C<\/td>\nSplitShare<\/td>\n1.08 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2019-01-10
\nMaturity Price : 25.00
\nEvaluated at bid price : 19.61
\nBid-YTW : 8.00 %<\/td>\n<\/tr>\n
HSB.PR.D<\/td>\nPerpetual-Discount<\/td>\n1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 21.25
\nEvaluated at bid price : 21.25
\nBid-YTW : 5.94 %<\/td>\n<\/tr>\n
BAM.PR.E<\/td>\nRatchet<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 21.67
\nEvaluated at bid price : 21.00
\nBid-YTW : 2.88 %<\/td>\n<\/tr>\n
MFC.PR.D<\/td>\nFixedReset<\/td>\n1.61 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.75
\nBid-YTW : 3.78 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n1.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 15.36
\nEvaluated at bid price : 15.36
\nBid-YTW : 2.86 %<\/td>\n<\/tr>\n
BAM.PR.B<\/td>\nFloater<\/td>\n2.32 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 15.41
\nEvaluated at bid price : 15.41
\nBid-YTW : 2.85 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset<\/td>\n87,094<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 23.14
\nEvaluated at bid price : 25.05
\nBid-YTW : 4.00 %<\/td>\n<\/tr>\n
SLF.PR.D<\/td>\nPerpetual-Discount<\/td>\n74,488<\/td>\nNesbitt crossed 65,100 at 18.45.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 18.45
\nEvaluated at bid price : 18.45
\nBid-YTW : 6.09 %<\/td>\n<\/tr>\n
SLF.PR.G<\/td>\nFixedReset<\/td>\n68,400<\/td>\nNesbitt crossed 21,300 at 25.21 and bought 11,800 from TD at 25.20.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 25.16
\nEvaluated at bid price : 25.21
\nBid-YTW : 4.01 %<\/td>\n<\/tr>\n
TRP.PR.A<\/td>\nFixedReset<\/td>\n54,118<\/td>\nNesbitt crossed 40,000 at 25.51.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2015-01-30
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.47
\nBid-YTW : 4.19 %<\/td>\n<\/tr>\n
BNS.PR.O<\/td>\nPerpetual-Discount<\/td>\n51,325<\/td>\nNational crossed 45,000 at 24.56.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 24.32
\nEvaluated at bid price : 24.54
\nBid-YTW : 5.71 %<\/td>\n<\/tr>\n
TD.PR.O<\/td>\nPerpetual-Discount<\/td>\n46,316<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2040-07-09
\nMaturity Price : 21.11
\nEvaluated at bid price : 21.11
\nBid-YTW : 5.76 %<\/td>\n<\/tr>\n
There were 16 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Naturally, the poster child for the financial crisis is the American homeowner, flim-flammed into buying a house and now being foreclosed. But see Subprime mortgages: Myths and reality for one take on this … and …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-11468","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11468"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/11468\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}