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acrossthecurve.com - 11/19/2008
Meltdown
—
That is the word that one market participant used to describe the action in the CMBS market today. I am sorry to be writing this so late but I just found it as I checked emails and thought it worth posting. CMBX AAAs widened by 130 basis points. AJ tranches widened 250 basis points to 350 ...
krugman.blogs.nytimes.com - 11/21/2008
Don't panic about the stock market
— krugman.blogs.nytimes.com — Panic about the credit markets instead. Interest rate on 3-month Treasuries at 0.02%; interest rate on high-yield... (junk) bonds over 20%. This is an economic emergency. (more) Don't panic about the stock market

Comments vote down EconomPic found this 11/21/2008found this
reuters.com - 11/20/2008
UPDATE 2-Commercial mortgage bond spreads soar, then steady
— reuters.com — (Changes headline, recasts lead, adds Fitch and Barclays comments, updates spreads) By Al Yoon NEW YORK, Nov... 20 (Reuters) - Yield spread premiums on a commercial mortgage-backed securities index soared to records for a third straight day, leading ... (more) UPDATE 2-Commercial mortgage bond spreads soar, ...

Comments vote down Alea found this 11/20/2008found this
angrybear.blogspot.com - 11/16/2008
The Credit Rating Game
— angrybear.blogspot.com — by Robert Waldmann In my teens when I learned of the existence of credit rating agencies I... wondered why private firms with such power weren't corrupt. Why don't firms pay birbess to obtain high credit ratings ? I still don't know the answer but I ... (more) The Credit Rating Game

Comments vote down Economist's View found this 11/16/2008found this

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Decline and Fall of Western Civilization:  commercial MBS crushed

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commercial MBS crushed
Decline and Fall of Western Civilization — across the curve: CMBX AAAs widened by 130 basis points. AJ tranches widened 250 basis points to 350 basis points. ( I am lacking expertise in this area but believe an AJ is sort of a junior AAA piece.) And tranches below AAA widened 150 basis points to 350 basis points. Cash CMBS underperformed the index and some AAA bonds with 30 percent protection widened 200 basis points. These are AAA bonds (allegedly) trading swaps plus 1050 basis points. That is alot of yield and alot of fear. Quoth the Buffalo Springfield circa 1966,” ...

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