Posts filed under “Credit”

Five Days of Misery

Nice piece in Barron’s about the under-performance of the Financials this week:

"Big sell-offs often create bargains, but, as Barron’s has warned ("No Bargains in Brokers," Oct 29) investors should tread carefully. Financial companies typically have huge balance sheets and relatively modest capital bases, making them vulnerable to asset write-downs. Bottom fishers in financials already have been burned badly this year."

Earlier last month on CNBC, I noted that the Banks and Brokers were major "avoids, with at least another 20% downside — but I didn’t mean this week!

Here’s a table from the Barron’s piece:

Five Days of Misery

Investors’ confidence in financial companies was shaken last week. So were the share prices of some of the sector’s erstwhile stalwarts.

Stock Change 2007*
Company/Ticker Price Week YTD EPS P/E
Citigroup (C) $37.73 -11.5% -32.3% $3.74  10.1
American Intl
Group (AIG) 
59.12 -4.9 -17.5 6.74 8.8
Bear Stearns (BSC) 102.16 -12.1 -37.2 11.12 9.2
Merrill Lynch (MER) 57.28 -13.3 -38.5 2.87 20.0
Washington Mutual (WM) 23.81 -16.7 -47.7 2.37 10.0
AMBAC Financial (ABK) 23.51 -46.9 -73.6 7.84 3.0
MBIA (MBI) 35.51 -29.5 -51.4 6.32 5.6
MGIC (MTG)  18.00 -7.1 -71.2 -2.50 NM

NM = Not Meaningful.

Sources: Bloomberg; Thomson Financial



The Week That Shook the Financial Sector
Barron’s NOVEMBER 5, 2007

Category: Corporate Management, Credit, Finance, Markets

Would You Like that all in money?

Category: Credit, Currency, Federal Reserve, Finance


Category: Commodities, Consumer Spending, Credit, Economy, Employment, Inflation, War/Defense

Loan Performance by State

Category: Credit, Real Estate

1980s Parallels?

Category: Credit, Federal Reserve, Markets

Can Housing Be “Rescued?”

Category: Credit, Data Analysis, Real Estate, Taxes and Policy

Markets Rally on Fed Rumors

Category: Credit, Economy, Federal Reserve, Inflation

Where was the Bubble: Houses, Rates or Credit?

Category: Credit, Derivatives, Federal Reserve, Fixed Income/Interest Rates, Real Estate

Mortgage Resets? Try Chapter 13 Bankruptcy!

Fascinating front page WSJ article today, titled More Debtors Use Bankruptcy To Keep Homes. It seems that Chapter 13 filings are gaining in popularity. Why? Because they halt foreclosure proceedings: “Last month, as the nation’s housing slump continued, consumer bankruptcy filings increased almost 23% from a year earlier – representing nearly 69,000 people — according…Read More

Category: Credit, Economy, Psychology, Real Estate, Taxes and Policy

Margin Debt Grows; Risk Grows Too

Category: Credit, Data Analysis, Investing, Markets, Trading