Securitization

can you understand this???? please help???

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Question by joa: can you understand this???? please help???
Hayes Lemmerz International, Inc. (Nasdaq: HAYZ) today reported financial results for its fiscal year ended January 31, 2007. The results were in line with preliminary results announced on March 16, 2007 and with guidance the Company provided to investors in December 2006.

For the fiscal year, the automotive and commercial highway wheels and components maker reported sales of $ 2.06 billion, up 5.1% from sales of $ 1.96 billion in the prior fiscal year. Earnings from operations were $ 4.8 million for fiscal 2006, compared with a year earlier loss from operations of $ 215.2 million, which included $ 185.5 million of goodwill impairment charges. Capital expenditures for the fiscal year were $ 80.8 million, down from $ 95.2 million a year earlier. The foregoing results exclude the suspension components business reported as discontinued operations, which had sales of $ 230 million, a loss from operations of $ 46.0 million and capital expenditures of $ 9.1 million.

The Company reported a net loss of $ 166.9 million for fiscal 2006, compared to a net loss of $ 457.5 million for fiscal 2005. The Company reported a loss from continuing operations of $ 120.9 million, compared with a loss from continuing operations of $ 287.1 million a year earlier.

Adjusted EBITDA for fiscal 2006 (including the suspension components business) was $ 188.6 million, up 7.3% from $ 175.7 million a year earlier. For the full fiscal year, Hayes Lemmerz reported free cash flow of negative $ 9.1 million, excluding the impact of the Company’s securitization program, an improvement of $ 71.6 million from a year earlier.

“Hayes Lemmerz is a much stronger company today than it was five years ago,” said Curtis Clawson, President, CEO and Chairman of the Board of Hayes Lemmerz.

“We have significantly decreased our dependence on U.S. markets, and continue to grow our international business, especially in Asia. By divesting non-core businesses and focusing on high growth/high return markets, we are continuing to execute our strategic business plan and our drive toward profitability and positive free cash flow. Sales to GM, Ford and Chrysler in the U.S., excluding discontinued operations, now account for only about 18% of global sales. Given the extremely difficult conditions in our marketplace, our results for 2006 are encouraging.”

As previously announced, as part of its continuing profit-enhancing initiatives, the Company completed the sale of two aluminum suspension components plants in February 2007. “These divestitures further reduce our dependence on the North American automotive market and free us from a very capital-intensive business,” said Mr. Clawson.

“Our new business wins point the way toward our future. We won over $ 575 million in annualized sales in 2006, of which 75% is international business,” Mr. Clawson said. “We continue to win with Japanese and Korean manufacturers, including Toyota, Hyundai, Nissan and Honda, both in the U.S. and internationally. We continue to win new business with our European partners, and in the U.S. markets our new business wins diversify our product mix with more crossover and passenger vehicles,” he said.

As previously announced, the Company�s board of directors has approved a rights offering for existing shareholders, for up to $ 180 million of common stock. Proceeds will be used to repurchase the Company�s 10.5% Senior Notes. The offering must be approved by shareholders at a special meeting scheduled for May 4, 2007. “By raising new equity capital and retiring high-cost debt, we are de-leveraging, strengthening our balance sheet and significantly improving free cash flow,” Mr. Clawson commented.

For the full fiscal year 2007, Hayes Lemmerz expects to achieve sales of about $ 2.1 billion, Adjusted EBITDA of approximately $ 195 to $ 205 million, positive free cash flow (excluding securitization impact) and capital expenditures of approximately $ 85 to $ 90 million.

Conference Call
Hayes Lemmerz will host a telephone conference call to discuss the Company’s full fiscal year 2006 financial results this morning, at 10:00 a.m. (ET).

To participate by phone, please dial 10 minutes prior to the call: (888) 295-5935 from the United States and Canada; (706) 758-0212 from outside the United States. Callers should ask to be connected to Hayes Lemmerz earnings conference call, Conference ID # 2107451. The conference call will be accompanied by a slide presentation, which can be accessed through the Company’s web site, in the Investor Kit presentations section at http://www.hayes-lemmerz.com/investor_kit/overview/presentations/www-presentations.html.

CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF CASH FLOW

Hayes Lemmerz International, Inc. is a world leading global supplier of automotive and commercial highway wheels, brakes and powertrain components. The Company has 30 facilities and approximately 8,500 employees worldwide.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Rights Offering will be made only by means of a prospectus. When available, copies of the prospectus may be obtained from Hayes Lemmerz International, Inc., 15300 Centennial Drive, Northville, Michigan 48168, (734) 737-5000, Attention: Corporate Secretary.

Use of Non-GAAP Financial Information
EBITDA, a measure used by management to measure operating performance, is defined as earnings from operations plus depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude asset impairment losses and other restructuring charges, reorganization items and other items. Management references these non-GAAP financial measures frequently in its decision making because they provide supplemental information that facilitates internal comparisons to historical operating performance of prior periods and external comparisons to competitors� historical operating performance. Institutional investors generally look to Adjusted EBITDA in measuring performance, among other things. The Company uses Adjusted EBITDA to facilitate quantification of planned business activities and enhance subsequent follow-up with comparisons of actual to planned Adjusted EBITDA. Free cash flow is defined as cash from operating activities minus capital expenditures plus cash from discontinued operations and the sale of assets. Management uses free cash flow to identify the amount of cash available to meet debt amortization requirements, pay dividends to stockholders or make corporate investments.

Forward Looking Statement
This press release contains forward-looking statements with respect to our financial condition and business. All statements other than statements of historical fact made in this press release are forward-looking. Such forward-looking statements include, among others, those statements including the words “expect,” “anticipate,” “intend,” believe,” and similar language. These forward-looking statements involve certain risks and uncertainties. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others: (1) competitive pressure in our industry; (2) fluctuations in the price of steel, aluminum, and other raw materials; (3) changes in general economic conditions; (4) our dependence on the automotive industry (which has historically been cyclical) and on a small number of major customers for the majority of our sales; (5) pricing pressure from automotive industry customers and the potential for re-sourcing of business to lower-cost providers; (6) changes in the financial markets or our debt ratings affecting our financial structure and our cost of capital and borrowed money; (7) the uncertainties inherent in international operations and foreign currency fluctuations; (8) our ability to divest non-core assets and businesses; (9) the risks described in our most recent Annual Report on Form 10-K and our periodic statements filed with the Securities and Exchange Commission; and (10) our ability to consummate the previously announced rights offering. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release.

Contact:

Marika P. Diamond
Hayes Lemmerz International, Inc.
(734) 737-5162

HOME | INVESTOR KIT | PRESS KIT | CAPABILITIES | PRODUCTS | LOCATIONS | ABOUT HAYES
Contact Hayes Lemmerz. � 1998-2007 Hayes Lemmerz International, Inc. All Rights Reserved.
Subject to Acceptable Usage Policy

Best answer:

Answer by pimpcess
i wish i could help you but sorry i dont get this=[

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Q&A: Is this the beginnings of a world wide central bank or worse a private takeover of world credit supplies?

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Question by bimma b: Is this the beginnings of a world wide central bank or worse a private takeover of world credit supplies?
http://news.yahoo.com/s/ap/20080915/ap_on_bi_ge/banks_plan

Best answer:

Answer by krollohare2
No. Foreigners have had their fingers in our pie for years. Maybe if we stopped buying from overseas and making our own stuff, they’d have to cash out eventually and use that money to buy what they need from us.

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Q&A: Explain the two main causes of market failure and give an example of each?

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Question by zaar: Explain the two main causes of market failure and give an example of each?

Best answer:

Answer by LucaPacioli1492
One kind is the divorce of market prices from reality: sometimes called “irrational exuberance.” These occasion asset “bubbles” of various kinds that have occurred throughout history. The Dutch Tulip bubble of the 1630s, as do many, envisaged the continual, monotonic increase in the price of tulip bulbs. The fundamental idea that tulips represented an attractive future market ( Holland’s present market for tulips is larger than the total trade in tulips during Tulipomania ) but the prices outstripped any reasonable valuation. More to the point of similarity with other bubbles, the use of credit, leverage and new financial instruments ( such as options contracts, futures, etc. ) allowed unbridled buying that would have been less had it been limited to cash deals. Stock market crashes that are more familiar are 1929, the tech bubble of 2001 and the recent one starting in Summer 2008. The latter was initiated by the asset bubble in housing and, most importantly, the credit expansion that fueled it ( both the low interest rates artificially maintained too long by the Fed, the artificial stimulation provided by government through the Community Reinvestment Act and the provision of unsound credit through the sub-prime (meaning “bad risk”) lending fostered by the CRA. The invention of new financial instruments followed the historical pattern with mortgaged-backed securities ( combined with irrational ratings from agencies ) adding to the innovation of securitization to allow other financial markets to be tapped and the mortgage pool to be reloaded.

Another kind of market failure is when there just isn’t enough liquidity to sustain transactions ( usually where, as a consequence, the bid-asked spread becomes impossibly large.) A recent example of this is the market for “Auction-rate Preferreds” where seven-day paper was touted widely for almost 20 years as an alternative to money-market funds until February 2008 when the auctions failed and those backing these markets just withdrew and the whole market froze into illiquidity.

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Q&A: Wall Street Rating Agencies?

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Question by Maxwell: Wall Street Rating Agencies?
This is for my test…

Wall street had to sell the rating agencies on the concept of securitization, where mortgages moved off the balance sheets of banks. And into a pool of securitized and backed by many mortgages so that the risk of default was minimized. Discuss the role of the rating agencies. Were they were involved in fraudulent activity since they made money by reviewing the bonds and making money on the bonds? If not fraudulent activity, what other rememdies could be made to protect the public interest?

thanks for the help. Will give out Best Answer to whoever even remotely helps me with this

Best answer:

Answer by Dr. Mengele
Well to put it simply the rating agencies, like Stand and Poore’s, were actually paid by investment banks to rate their securities. It was not fraudulent since the agency offers a opinion which is not legally binding. Since the agencies gave CDOs a AAA rating, they were popular among pension funds. Since pension funds backed up their securities with insurance agencies, the default of CDOs destroyed AIG. So in conclusion no, legally there is nothing there you can say was fraudulent, however the rating agencies destroyed the biggest insurance company in the world.

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Q&A: Did Socialism or Capitalism bring about America’s current financial demise?

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Question by Water_Resources: Did Socialism or Capitalism bring about America’s current financial demise?

Informed answers appreciated.
Demise; the end of something that used to exist, especially when it happens slowly and predictably.

Best answer:

Answer by birdie
Cute question! I will sit back and enjoy the show!

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How did Enron use SPE’s to hide large amounts of debt?

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Question by amcenicola: How did Enron use SPE’s to hide large amounts of debt?

Best answer:

Answer by werner.herzog
A special purpose entity is a company that is created by a parent company, usually to carry out a specific, limited purpose, such as the securitization of a set of assets. An SPE may be set up as a corporation, partnership, LLC, or trust. Enron created lots and lots of SPEs. As long as Enron technically controlled no more than 50% of an SPE, Enron was not required by accounting rules to consolidate the SPE’s assets and liabilities, so any debts belonged to the SPE and did not show up on Enron’s books. The simplest way Enron hid debt in the SPEs was by selling assets to the SPEs, which had borrowed money in order to purchase the assets. The problem was that Enron was liable to repay the loans taken out by the SPEs. So, basically, Enron was making a sale to itself, showing a profit on its books, and hiding the corresponding loss in the SPE. These false profits (sorry) covered up Enron’s actual business losses.

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Q&A: Which is worse: Rand Paul’s Libertarian Views or Rand Paul’s Historical Ignorance?

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Question by dolphin314etc: Which is worse: Rand Paul’s Libertarian Views or Rand Paul’s Historical Ignorance?
Both are pretty bad, I suppose, but which is more harmful, which causes you more dismay?

Libertarian views are what caused Alan Greenspan to consider the securitization of Mortgages into very complex investment vehicles to be useful and valuable innovations in finance. Greenspan was a student of Ayn Rand, the founder of modern American Libertarian economics and philosophy.

Greenspan, like your professor in Econ 101, feels that any interference by government in the free market, always backfires by producing bad unintended consequences. This view was also held by Milton Friedman, Ronald Reagan and G.W. Bush.

So, the SEC officials were watching porn on the internet, and not Wall Street. Regulation is bad, so let’s take out all the control rods and the economy will really get going — that was the view.

We know now that the Libertarian view is bad economics and totally misguided, and just plain wrong.

What happens when you take out all the control rods is not a wonderful new day for the economy. Instead you get the implosion of the economy into a credit crisis that engulfs the whole world.

Even in small towns, people have heard about the Great Recession. What they don’t know is that it is tied very closely to exactly the kind of libertarianism that Rand Paul espouses and wants to bring back.

So his libertarian views are a basis for some dismay.

But so is his historical ignorance. He seems almost more ignorant than Sarah Palin, and she was truly the Queen of Clueless.

To not know about Heart of Atlanta Motel — which was the Supreme Court case that decided the issue of seating people at private lunch counters really reveals deep gaps in this man’s education. He must have gone to High School. Did he take US History? How did he do he that course? Or was he raised maybe in Indonesia?

There are also plenty of cases that finally put to rest the issue of non-discrimination when selling a private house. Yes, you can sell your house. But if you put your house up for sale, no you cannot pick and choose the buyer based purely on their skin color. Rand Paul is still struggling with that. He’s not retarded, but he’s clearly some kind of a throwback. Hey, Rand, join USA, it’s the country you live in! We are not coming to your planet.

He’s also not sure that BP really ought to pay for the oil spill in the Gulf.

Rand Paul is ignorant and wierd. That may not be a problem for a US Senator (see also Senator Inhoff), but surely it would dismay a rational voter if Rand Paul ran for higher office.

The Rand Paul story is a sad one for USA. It bespeaks our inability to learn the big picture factors that cause our national catastrophes, and it betokens the utter failure of our educational system at the High School and College levels.

Sarah Palin says “Now Rand Paul knows what it feels like to be me.”

And for a reason, sweetheart, for a reason.

Best answer:

Answer by Dude
for me, his libertarianism is worse, but I know this was a rhetorical question.

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a companies acceptance of credit cards like visa is an expample of ?

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Question by Kristen S: a companies acceptance of credit cards like visa is an expample of ?
securitization
factoring with recourse
discounting
factoring without recourse

Best answer:

Answer by googie
Marketing Question ? Mid -term Exam? Security is the main reason. The amount of the clients purchase is known. It is scribed into the credit card’s approval activity,with the amount to be charged, Visa approves the amount and the customer gets the goods.So now, instead of every retailer carrying receivables, the credit card people assume the risk, and receive a percentage for their work. Visa is in effect factoring with recourse. If any problems arise Visa charges back the amount to the retailer.

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how much factual info should i include in my essay?

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Question by ijustwannalive23: how much factual info should i include in my essay?
i’m writing a persuasive essay about whether i think there will be another great depression or not. it’s persuasive, so i’m not sure how much actual facts i should include. i know i need some to use as supporting details, but should it be really factual?

thanks

Best answer:

Answer by George
it sould be the true description of the great deparession along with the efforts to move twoard its recovery. Read this account although it a little short on the recovery but it is at the end of this essay.

The late-2000s depression was economic and it began in the United States in December 2007 (and with much greater intensity since September 2008, according to the National Bureau of Economic Research. It spread to much of the industrialized world, and has caused a pronounced deceleration of economic activity. This global depressionhas been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2010. Although the late-2000s depression has at times been referred to as “the Great Deparession,” this same phrase has been used to refer to every recession of the several preceding decades. In July 2009, it was announced that a growing number of economists believed that the recession may have ended.
The financial crisis has been linked to reckless and unsustainable lending practices compounded by government intervention and the growing trend of securitization of real estate mortgages in the United States. The US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world. A more broad based credit boom fed a global speculative bubble in real estate and equities, which served to reinforce the risky lending practices. The precarious financial situation was made more difficult by a sharp increase in oil and food prices. The emergence of Sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. As share and housing prices declined, many large and well established investment and commercial banks in the United States and Europe suffered huge losses and even faced bankruptcy, resulting in massive public financial assistance.

A global depression has resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. In December 2008, the National Bureau of Economic Research (NBER) declared that the United States had been in recession since December 2007. Several economists have predicted that recovery may not appear until 2011 and that the recession will be the worst since the Great Depression of the 1930s. The conditions leading up to the crisis, characterised by an exorbitant rise in asset prices and associated boom in economic demand, are considered a result of the extended period of easily available credit, inadequate regulation and oversight, or increasing inequality.

The depression has renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Fiscal and monetary policies have been significantly eased to stem the depresion and financial risks. Economists advise that the stimulus should be withdrawn as soon as the economies recover enough to “chart a path to sustainable growth”.

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what is the cause of lehman brother’s financial trouble?

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Question by Lauren L: what is the cause of lehman brother’s financial trouble?
what decisions did Lehman Brothers, Bear Stearn’s and Merrill Lynch make that led them to financial trouble?

Best answer:

Answer by HJ Bear
Somewhat applicable to the industry as a whole
1) thin capital base to start
2) investments in alt-a mortgage loans and commercial real estate soured. in better times, they made good money buying assets and reselling for a profit; but the music stopped. they were also “hung” with a lot of bad corporate bridge loans.
3) financed themselves very aggressively with repo loans from other financial institutions which could get called quickly
4) the investment banks attempted to hedge some of their sub-prime and securitization risk with third parties (such as MBIA, SCA) who lost their AAA credit rating due to sub-prime crisis
5) underwriting profits came to a halt

More specific to Lehman
6) they did not raise capital (dilutive to current shareholders) and tried to ride out storm. Even when they were close to the abyss, they were high-handed when the Korean Development Bank was considering an investment
7) they lost credibility because they were seen hiding the ball
8) short sellers may have exacerbated the perceptual issues. the ban on certain types of short selling had been lifted a week before they blew up.
9)The recent conservatorship of FNMA and Freddie may have destabilized access to funding. The form of rescue by the Treasury inadvertently chilled the potential for other financial institutions to tap the equity markets
10) The US Treasury Dept and Fed Reserve, stung by criticism about their handling of Bear Stearns, took a tough line on aiding Lehman. Their desire to administer tough love to the capital markets backfired when none of the rescuers stepped up to the plate.

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Q&A: Looking for cases in Washington State…?

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Question by commandrix: Looking for cases in Washington State…?
I am looking for any cases in Washington State that have to do with tracking ownership of notes through the securitization process, and what effects the sale of said note may have had on holder status… appellate rulings would be best. Have been looking online but this is getting FRUSTRATING. Can anybody give me links to cases and they MUST be from the Washington State court system. Whoever can give me the most useful stuff gets the 10 points.

Best answer:

Answer by Cliff
The reason no one can help you is because you aren’t making it clear what issue you are looking into…It sounds like you may be looking for “holder in due course” rules in terms of what the status gives the holder and how a holder becomes one in due course…Try searching those terms

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Q&A: What are various methods of financial restructuring?

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Question by freind2all: What are various methods of financial restructuring?
Please provide answer with details.. thanx

Best answer:

Answer by chipolte
summer because it is hot
winter because it is cold
fall because it is breezy
spring because it is warm

over and over and over until it ends

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Discuss factors that have contributed to the increase in the number of foreclosures?

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Question by Roman: Discuss factors that have contributed to the increase in the number of foreclosures?

Best answer:

Answer by ?
The development of a pass through mortgage market. In the 70’s and 80’s banks started developing mortgage backed securities or MBSs an MBS is a big pile of mortgages wrapped up together to become a security similar to a bond but with a few differences. By packaging and selling MBSs banks do not have to hold entire mortgages on their balance sheets after they sell them to investors, the mortgage payments are passed through the bank to the investors. Because the banks don’t hold them they don’t care as much who gets a mortgage, some guy who really shouldn’t have gotten a million dollar mortgage might be more likely to get one in a pass through market. Many loans are also created by loan originators and mortgage brokers who line up deals and pass them to banks to be packaged. These guys don’t ever hold the mortgage so they care even less who gets a mortgage or not. Because the risk of writing a mortgage loan to someone has been spread out and passed along through securitization and sale a greater number of “bad” loans have been written in the recent past.

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how hard is it to get a mortgage now if you have decent credit, no down payment,?

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Question by baebeecakes: how hard is it to get a mortgage now if you have decent credit, no down payment,?
a good credit score, and 2 years job employment? is it harder now with all the foreclosures?

Best answer:

Answer by chatsplas@sbcglobal.net
Difficult. Yes, harder now than before–that’s why there are all the foreclosures. Frequently peolpe without a down payment aren’t good credit risks and shouldn’t be buying a home–that’s why the foreclosure rate is climbing. Start saving, putting money aside. You need a down payment even with the good credit and stable employment record.

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Why did the realty prices in USA slump?

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Question by Assassin: Why did the realty prices in USA slump?
Also, is the financial mess that is all around only bcoz of the housing sector??
Kindly also explain the meaning of the term “Securitisation”…Try keeping it simple…Thanx.
Samantha, u know what, had I been a terrorist the 1st thing I’d have done wud have been to blow ur fuckin brains off(that is if u have one coz certainly goin by ur answer one cannot dare to think so)….Damn u r stupid!!!!

Best answer:

Answer by Samantha C
why do i get that terrorist vibe from you?

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Why and when do Government bonds fall?

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Question by TheBluesman: Why and when do Government bonds fall?
Hi, I have a question and I’m not sure why a Govt. bond would fall, or what that means?

e.g. Greek bonds fell for a third day, with the yield on the two-year note rising 1.3 percentage point to 6.41 percent.

Best answer:

Answer by Len
Bonds fall when interest rates rise. These bonds have repayment obligations. When they fall or fail, the sponsoring nation is at risk of losing the opportunity to borrow due to diminished credit facilities. This cripples economies, stifles business and wrecks governmental administrations.

Failing economies drop as people lose confidence in their ability to continue as in better times. Rising rates are often perceived as a last ditch and desperate attempt to create the image of strength. At the same time, those rising rates work against bond securitization.

Len

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Can someone explain this in an easier way.?

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Question by Arrow: Can someone explain this in an easier way.?
I don’t really get this statement:

Excessive lending under loosened underwriting standards, which was a hallmark of the United States housing bubble, resulted in a very large number of sub prime mortgages. These high risk loans had been perceived to be mitigated by securitization. Rather than mitigating the risk, however, this strategy appears to have had the effect of broadcasting and amplifying it in a domino effect.

Best answer:

Answer by Books
It’s saying that money was loaned to people who couldn’t afford to pay it back. The loans were sold to investors to spread the risk. The amount was so great that spreading the risk by selling the loans to other investors just caused greater damage.

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What does NovaStar have going?

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Question by WOW: What does NovaStar have going?
what is the importance of this 1.3 Billlion asset backed securitization? Help me understand please

Best answer:

Answer by Ichi
THey have considerable backing, but the money is not actually in their own coffers, so to speak!

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macroeconomic issues plz help?

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issue by Kenny : the macro-economic issues plz help
When banks bundled and sold securities backed mortgages resulting A. they isolated the banking system of any risk defects paiement.B. They have significantly reduced the overall risk of defects paiement.C. buyers of these securities assumed the entire risk of defects paiement.D. they reduced their direct exposure to default risk mortgages, but were still exposed in the form of loans to investisseursdans securities backed hypothèques.16. In the financial sector, “securitization” refers to: A. increased insurance coverage on deposits bancaires.B. requiring larger down payment on the purchase of housing in order to reduce the risk of loan default hypothécaires.C. clustering groups of loans, bonds, mortgages and other debt into new titres.D. increased collateral requirements on prêts.12. The “shadow banking system” refers to: A. the granting of credit through the underground economy when the financial crisis of 2007 and 2008produite.B. the process by which trade securities provide credit for personal and commercial needs outside Deles traditionnels.C bank loans. the series of illegal financial transactions that precipitated the financial crisis of 2007 and 2008.D. made to buyers who are risk pauvres.19 credit mortgages. Default swaps on A. helped reduce losses due to the crisis loan hypothécaire.B. involve the exchange of high-risk mortgages for securities backed by mortgages low risque.C. are ready to investors in securities backed by hypothèques.D. holders of securities backed by insured loans if they underlying loans were not remboursés.23. Which of the following describes the identity embodied in a balance? A) Assets and reserves Netteb equal value) of a net asset value égalitéC liabilities) assets over liabilities net worth égaleD) Assets Liabilities equal, plus the nette34 value. Banks create money when they: A) money prêt.B) add to their reserves to fédéraleBanque.C reserve) accept deposits of money D) sell government bonds Best answer:

response Abdul Masiih
first ouhttp :/ / en.wikipedia.org/wiki/Collateralized_mortgage_obligation23. D. Net Worth = Assets – Liabilities (btw, you could understand it easily) 34. A (again, easily found in your book) Good reading. You’ll get much more out of it if you find as many answers as possible for you.


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