From the monthly archives:
Here is yet another interesting story on the spreading impact of wider spreads — this time focused on the spreadbetween yields on vehicle-loan Asset Backed Securities over Treasuries. From Bloomberg:
“Wider spreads on auto-loan securities may make it harder for the financing arms of Ford Motor Co., General MotorsCorp. and Chrysler LLC to compete with banks [...]
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I’ve mentioned recently (including in this Money and Markets piece) that the falloutfrom Fannie Mae and Freddie Mac is spreading far and wide. For instance, many banks and financial instiutionshold preferred shares issued by the two Government Sponsored Enterprises. There are a lot of questions about howthose preferreds would be treated in any bailout. But what is not [...]
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Some interesting news worth mentioning: It looks like the AUTOMAKERS are now joining the list of companies shoppingfor bailout money in Washington — perhaps $25 billion in subsidized, low-interest federal loans. From a Reutersstory this afternoon:
“The Big 3 Detroit-based automakers are seeking about $25 billion in federal loans as they struggle to ride out a [...]
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For the past several months, this is what you’ve heard from the financial industry about the scope of thecredit crisis:
“It’s just subprime mortgages.”
Then …
“No, it’s just Alt-A and subprime.”
Then …
“Okay, you’re right. Prime doesn’t look so hot anymore either. But clearly, it’s just residential mortgages.
Then …
“Those auto loans? Alright. You caught me there too. But [...]
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Initial jobless claims filings surged to 455,000 in the week ended August 2 from 448,000 in the prior week. That waswell above the 425,000 forecast of economists polled by Bloomberg … the highest in any week since March 2002 … andone of the highest readings going back a couple of decades.
This is yet another indicator [...]
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