Market indicators show little sign of investors
betting on default.
Not exact matches
They bought credit
default swaps, which meant that they were
betting that people would
default on their mortgages.
In 2012, JPMorgan Chase, the largest bank
on Wall Street, lost $ 6.2 billion
betting on credit
default swaps tied to corporate debt — and then publicly lied about the losses.
After all, AIG was already writing financial reinsurance through
default swaps
on such mortgages, why not add to a winning
bet?
Half of the bailout money effectively went in the front door of AIG and then out the backdoor to the big Wall Street banks and hedge funds that had used AIG as their counterparty to guarantee their
bets on Credit
Default Swaps.)
The
betting odds (at time of writing)
on a partial US debt
default this year were 6/4 - Default and 1/2 - No D
default this year were 6/4 -
Default and 1/2 - No D
Default and 1/2 - No
DefaultDefault.
We need a show like The Bold Type to remind us that cynicism doesn't have to be the
default — so here's hoping Freeform
bets on its best new asset with the same confidence that the women of Bold Type would
bet on themselves.
They
bet on a collapse in the mortgage market by buying what are called credit
default swaps (CDS), a form of insurance against bad loans.
They're effectively leveraged
bets on spread movements in indices of credit
default swaps.
I understand that counterparty risk, or the risk of the counterparty
defaulting when they lose
on a
bet, is inherent when trading derivatives.
Investors exclusively
betting on the HR category had it even worse with 63 % of the loans eventually
defaulting or being charged off.
After all, AIG was already writing financial reinsurance through
default swaps
on such mortgages, why not add to a winning
bet?
But John Paulson is a hedge fund manager who has shown a propensity to also focus
on long / short investing and taking macro
bets as well, like his foray into shorting subprime credit
default swaps and
betting big
on gold.
We had a lot of macro protection in terms of credit
default protection
on bonds we didn't own, just
betting that credit spreads would widen.
All this being said, your best
bet to stop garnishment before it begins is to get out of
default on your loans.
The New York - based firm's credit funds rose as much as sixfold last year, helped by
bets that rising
defaults on subprime home loans would pummel the value of mortgage - backed securities.
All that said, you can
bet on 1 particular X-Man, and that's Wolverine...... specifically I'm predicting now the
default game skin, and story-wise, it will be Old Man Logan.
Maybe your wishes are an exact copy of the
default procedure in your state — but are you willing to
bet on that?
If you want the people who
bet big
on the surveillance business - model to go broke, there is no better way to punish them in the marketplace than by turning off the data - spigot with tools that undo every nasty
default they set in the hopes that we'll give up and use products their way, not ours.
That suggests buyers are
betting on an economic recovery that would lessen real estate
defaults and delinquencies.
You can
bet that if someone
defaulted on their home loan, there are also other debts associated with the property, including things like unpaid property taxes, utility bills, and maybe even a code violation or two.
The workaround: a lower down payment combined with private mortgage insurance, or PMI — basically a way for banks to hedge their
bets if you
default on the loan.
Factor in premium payments
on CMBX credit -
default swaps — investors can't invest directly in or
bet against the index — and during the past year any short was surely a losing
bet, even as the mall Big Shorters look more and more correct.
Clemente of Clemente Development, which is raising a vulture fund, is
betting that CMBS loans made
on projections of future rents rather than current rents will lead to rampant
defaults.