Relevant:
- CITI, BOFA BUYING BACK LAUNDERED LOANS AT LOWER RATES
- AFL-CIO Guy Blasts Treasury On Foreclosuregate; Bank Valuations, TARP, Systemic Risk
- JPM And Bank Of America Pay Themselves Back In Yet Another REIT Offering
- BofA Feels Bite of Move Into Mortgage-Backed Securities
- More Troubles for Banks from Auction Rate Securities
2009-03-26 — market-ticker.org
" According to the New York Post, Citi and Bank of America have been aggressively buying up Alt-A and ARM mortgage backed securities, sometimes paying more than the going rate of around 30 cents on the dollar."
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Comments:
thetruthfromNC at 04:12 2009-03-27 said:
this happens in every big down turn, those with cash can buy low and sell high later. If every house loast 50% of it value, but you could buy if for 30% and sell a year later for 40%, you make 33% profit...not bad. I.E. house was worth 500,000, now 250,000 in value. You buy for 150,000 and sell later for 200,000. And this is if they make zero payments and default. If they do make payments it gets better their 500,000 note is paying 42,500 per year at 8.5% on 150,000 investment. Permalinkadd a comment | go to forum thread
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