Countrywide - Page 5

cbloom · #41 08-18-2007, 01:34 PM

talent, desert, thanks much, very interesting stuff.

OrangeCat · #42 08-18-2007, 05:33 PM

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I still don't get why this is a surprise to anyone. I thought everyone saw the lending practices in the bubble and knew what was going on. How could you possibly buy a mortgage bundle from Countrywide and think it was a AAA security?!?!?

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Because Moodys, S&P, and other rating agencies were lying. They give AAA ratings on worthless paper.

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Lying may be a little strong but mortgage backed securities were certainly over rated. In July, rating changes were made to something more reflective of reality. That triggered a sell off and the ensuing credit crunch.

Very good article in WSJ on Aug 15 about the role of Moody's and S&P in all this.

To the guy who bought CFC on Thursday: You are very lucky. Take the money and run. If that ARM reset chart is correct a lot more pain is coming.

kyleb · #43 08-19-2007, 04:19 PM

I didn't actually buy it, come on now.

CrushinFelt · #44 08-19-2007, 07:26 PM

Bought $2000 worth of CFC bond yielding 10% is at the market open on Friday. Was quoted on Bloomberg as over 12% but the spread was pretty sick, couldn't get anything over 10. I still like the investment though. Goes until 2011; though I plan on getting rid of it once the yield curve drops

DesertCat · #45 08-19-2007, 07:28 PM

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Bought $2000 worth of CFC bond yielding 10% is at the market open on Friday. Was quoted on Bloomberg as over 12% but the spread was pretty sick, couldn't get anything over 10. I still like the investment though. Goes until 2011; though I plan on getting rid of it once the yield curve drops

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Where can you buy bonds in that small of quantities?

CrushinFelt · #46 08-19-2007, 11:42 PM

etrade

maxtower · #47 08-20-2007, 01:14 AM

Is it yielding 10% because there is a big risk of default?

CrushinFelt · #48 08-20-2007, 08:03 AM

Yup. I think something like 9.8% is around the cut off for being junk.

I'm hoping more for this thing to start trading much closer to $100 so I can jus get rid of it and take a 20%ish gain

Jimbo232 · #49 08-22-2007, 07:27 PM

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right now. buy it now.

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BOA Plans $2B Investment in Countrywide

The stock is up ~21% after hours since the news. Nice score for anyone who got in early this week.

'Chair · #50 08-22-2007, 07:27 PM

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I didn't actually buy it, come on now.

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bet you wish you had with the after hours news...yum yum

1. buffet buys bank of america
2. bank of america buys cfc
3. #@$*^#*&^@
4. profit?