Securities backed by credit cards, auto loans, and even what mortgage brokers thought were good credit risks in the housing market are all facing trouble ahead. De-leveraging-the selling of assets bought with credit-is taking place at the corporate and household level, even if it’s not always willingly. Necessity is the mother of liquidation. The New York Times reports that, “Bond investors first stopped buying private home mortgage deals, then shunned commercial mortgages.
August 14th, 2008 | Dan Denning | 9 comments | ContinuedAll Posts Tagged With: "credit card debt"
U.S. Fed Now Accepts Credit Card Debt as Collateral
The Fed has become the mother of all credit exiles, accepting Wall Street’s over-valued, under-performing, dead-beat loans. At least that is what it’s done in a metaphorical sense. On Friday the Fed expanded the list of collateral it will accept for asset-swapping through its Term Securities Lending (Facility). That list of asset-backed securities now includes collateralized car loans, credit card receivables, and student loans.
May 5th, 2008 | Dan Denning | 7 comments | Continued