Comments on: $231 Billion in Writedowns and Credit Losses: The List of Mortgage Players Grows Larger. http://www.mybudget360.com/231-billion-in-writedowns-and-credit-losses-the-list-of-mortgage-players-grows-larger/ Investing ideas for preserving wealth in a fluctuating market. Mon, 08 Sep 2008 14:05:25 +0000 http://wordpress.org/?v=2.3.2 By: mybudget360 http://www.mybudget360.com/231-billion-in-writedowns-and-credit-losses-the-list-of-mortgage-players-grows-larger/#comment-192 mybudget360 Sun, 06 Apr 2008 02:09:47 +0000 http://www.mybudget360.com/231-billion-in-writedowns-and-credit-losses-the-list-of-mortgage-players-grows-larger/#comment-192 The more pressing question will come once we see the impact of Pay Option ARMs and also Alt-A mortgages. We are already seeing defaults in prime mortgages rising simply because of the oncoming recession. The more pressing question will come once we see the impact of Pay Option ARMs and also Alt-A mortgages. We are already seeing defaults in prime mortgages rising simply because of the oncoming recession.

]]> By: nom http://www.mybudget360.com/231-billion-in-writedowns-and-credit-losses-the-list-of-mortgage-players-grows-larger/#comment-181 nom Thu, 03 Apr 2008 17:39:59 +0000 http://www.mybudget360.com/231-billion-in-writedowns-and-credit-losses-the-list-of-mortgage-players-grows-larger/#comment-181 "It is amazing that we have now reached $231 billion in writedowns and we still have more sub-prime mortgages that will default this year" Writedowns include future forecasts of defaults. So the sub-prime mortgages set to default, are actually included in the 231. Most banks are using "worst-case scenario" assumptions in their models to flush out and account for all expected losses. It will be interesting to see, however, which banks have higher defaults than their "worst-case scenarios"! “It is amazing that we have now reached $231 billion in writedowns and we still have more sub-prime mortgages that will default this year”

Writedowns include future forecasts of defaults. So the sub-prime mortgages set to default, are actually included in the 231.

Most banks are using “worst-case scenario” assumptions in their models to flush out and account for all expected losses.

It will be interesting to see, however, which banks have higher defaults than their “worst-case scenarios”!

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