phlash79

As Alt A Mortgages Breakdown, Ultrashort Financial Not So Cool Anymore

Yes it would seem that SKF is the place to be...I legged in as the price started falling...I have seen several analyses of the RBMS --residential backed mortgage securities and the CBMS -- commerical backed mortgage securities....specific... monthly default rates and they agree with they synopsis above...in fact the graphs show the upcoming resets for sub-prime are defaulting earlier and at a higher rate...it also showed higher rates for the ALT A and even the Prime...MY GREATEST FEAR with this position is the continued intervention in creative and unexpected ways that the government continues to implement to keep the credit market and the BIG 5 Trading houses from freezing up...this is one play where I believe patience and wide stops to the downside will be necessary...unless the widespread market begins to learn the magnitude of the issue and that we have only been dealing mostly with loans defaults from 2005 resets...

Have a Happy Easter...