Use "subprime" in a sentence
subprime example sentences
subprime
1. A fictional investment bank, probably a thinly disguised Lehman Brothers, discovers that its huge holdings of subprime mortgage bonds are worthless
2. institutions offered subprime loans, interest only loans, and loans to people
3. The American economy had begun its free fall, with the Dow diving and subprime loan specialist Countrywide Financial collapsing
4. The first episodes of these shows marked almost the exact top of the real estate market and preceded the subprime market debacle of 2007-2008
5. The last financial crisis I’d like to review is the subprime crisis of 2008
6. That spectacular advance in housing prices was fueled partly by easy credit and partly by mortgage loans made to borrowers of subprime quality, borrowers who often had insufficient assets or income
7. The subprime loans were hidden from view behind the complicated mathematical formulas that determined the payouts investors got from each tranche
8. In any event, when large numbers of subprime borrowers began to default on their mortgages, the prices on certain tranches of mortgage securities fell spectacularly
9. The stock market consequences of the subprime crisis have not yet been completely recorded as I write this (in November 2008)
10. A number of books have recently been published or are forthcoming that discuss the subprime meltdown in the financial markets over the past year
11. ” It detailed the financial tribulations of mortgage lenders, in this case New Century Financial, which had specialized in the subprime segment of the mortgage market
12. On March 14, the day of the market low, the Wall Street Journal headlined: “Subprime Fears Spread, Sending Dow Down 1
13. ” These two stories are among several in my diary associating the February-March stock market drop with a subprime mortgage crisis
14. In fact, the historical data used to estimate the chances of the mortgage loans being repaid showed that even low-quality borrowers, the so-called subprime borrowers, had good repayment records
15. After all, home prices only went up, didn’t they? This data was used by ratings companies like Standard & Poor’s (S&P) and Moody’s Investors Service to justify rating even those securities backed by subprime mortgages as AAA quality, especially after they had been repackaged into collateralized debt obligations
16. This led to an increase in mortgage defaults, especially among subprime borrowers
17. There was no historical basis for estimating the rate at which subprime borrowers would default as housing prices fell and put them in negative equity situations
18. In 2008 Shiller published The Subprime Solution, in which he presents his analysis of the collapsing real estate bubble and suggests solutions for managing the crisis
19. However, it did not calculate the risks correctly, and when subprime mortgages started blowing up, AIG was in big trouble
20. When the subprime mortgages started to default, the underlying mortgage-backed bonds insured by AIG started failing and AIG was caught without enough liquidity to back the securities it had sold
21. In fact, it didn’t manage its portfolio of risks correctly because it was overexposed to subprime mortgage risks without knowing their magnitude
22. At the height of the crisis, Citigroup alone had written off more than $60 billion in bad loans related to the real estate sector and subprime exposure
23. Lehman had big exposure to the real estate sector — and to subprime specifically
24. This would have meant identifying cash flow issues at Lucent or subprime exposure in the case of WaMu before the stocks ran into trouble
25. Anyone wondering how the 1940 edition of Security Analysis comes through in this regard needs only consider Graham and Dodd’s discussion of mortgage investing in the light of the subprime and collateralized debt obligation (CDO) experience of 2007:
26. More recently, the derivatives market in asset-backed securities of subprime mortgages offered a similarly distorted risk-reward equation in the form of credit default swaps (CDSs)
27. These securities are a series of puts on bonds backed by subprime mortgages on residential property
28. However, some astute investors realized that the underlying collateral was much riskier and subject to far more downside than the buyers originally assumed when they purchased CDSs on subprime bonds and indexes
29. When the subprime market collapsed in 2007, some of these securities increased in value more than 50 or 60 times the amount at risk
30. 5 The credit crunch triggered by subprime mortgage losses that began in July 2007 is a recent and dramatic example
31. One of its joint ventures that specialize in buying subprime mortgages and securitization was hit hard causing it to report big losses
32. 1B is subprime, and probably about half of that is covered by reinsurance, and another $400M is already reserved for
33. So if 100 percent of subprime borrowers default tomorrow (no more premiums paid) with zero cures and zero recovery to Radian,
34. For example, the co-founder of subprime mortgage lender New Century Financial Corporation, Edward Gotschall, sold more than $15
35. ” And when I formed the general partner of my subprime funds, I named it AF GP—after Alan Fournier, because of the phone call we had
36. At one point during the 2008 bank subprime loan and credit crisis, the stock of this leading New York City bank got down to $3
37. They preserved their capital and avoided the brunt of the dramatic and costly market collapse in the fall of 2008 that resulted from excessive problems in the market for subprime mortgage real estate loans (which had been sponsored and strongly encouraged by the government)
38. In fact, the subprime real estate mortgage meltdown and the financial credit crisis that led to the highly unusual market collapse of 2008 can be easily traced to moves in 1995 by the then-current administration to substantially beef up the Community Reinvestment Act (CRA) of 1977
39. This will be needed to reignite the IPO market and the American economy after the economic collapse that the subprime real estate program and the credit crisis caused in 2008
40. The list would include President Eisenhower’s heart attack, the Cuban missile crisis, the Kennedy assassination, an outbreak of war, the Arab oil embargo, expectations of government actions such as wage and price controls, 9/11, war in the Mideast and, more recently, in early September 2008, when subprime real estate news got worse and the market expected a very liberal president to be elected
41. This happened, of course, in 2008 with AAA subprime loans in real estate mortgage packages
42. I got conned into buying subprime lender Cattles by the idiots on the BBs
43. ResCap was a major subprime lender that became an albatross for GMAC when losses ballooned during the financial crisis
44. com crash of 2000-2002 and the subprime mortgage crash that began in 2008 and is still going on as I write in early 2009
45. Banks started lending to subprime borrowers
