Sentences with phrase «fund subprime loans»

Since that market is so tempting, big banks devised a system that allows them to fund subprime loans without actually issuing them.

Why did they not find a local bank who did not fund subprime loans?

Not exact matches

In the quest to compensate for low fixed income returns, pension funds have plowed money into stocks, private equity funds and illiquid and very risky investments, like subprime auto loan securities and commercial real estate.

As a direct subprime lender, our track record of funding transactions is solid, with over $ 250M in hard money loans funded in the past decade.

Money - market funds, which are big buyers of commercial paper, are spooked by possible contagion from subprime mortgages, or risky home loans granted to low - credit home buyers, and are shunning commercial paper backed by assets.

In August, when rising defaults on subprime home loans, made to borrowers with poor credit, began causing market turmoil, the dollar initially benefited from safe - haven flows as investors fled risk for U.S. Treasuries and Americans repatriated funds.

Bear Stearns averted a meltdown this time, but if delinquencies and defaults on subprime loans surge, Wall Street firms, hedge funds and pension funds could be left holding billions of dollars in bonds and securities backed by loans that are quickly losing their value.

While many people who finance cars for long period do not fall into the subprime category, enough do to make these loans dangerous for the companies that fund them.

With a surge in defaults on subprime home loans jolting credit rating agencies and two Bear Stearns hedge funds in recent weeks, some fear that these models may overlook swift market downturns or corrupt loan data.

Much like mortgages, subprime auto loans go through Wall Street's securitization machine: Once lenders make the loans, they pool thousands of them into bonds that are sold in slices to investors like mutual funds, pensions and hedge funds.

And, like subprime mortgages before the financial crisis, many subprime auto loans are bundled into complex bonds and sold as securities by banks to insurance companies, mutual funds and public pension funds — a process that creates ever - greater demand for 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.

Edwards: Create fund to help home owners renegotiating subprime loan terms.

Lenders and hedge funds with large exposure to subprime loans have lost big.

Source Capital is a direct premier subprime, private money lender in Oregon that specializes in funding of commercial and residential real estate subprime and hard money loans.