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Cathay General Bancorp Message Board

  • jamesbird79 jamesbird79 Sep 22, 2008 11:52 AM Flag

    CATY Fannie Mortgage backed securities

    The 1.3 billion mentioned in a prior post were of Mortgage backed securities were purchased from Fannie and Freddie. There is no 75% haircut on such paper. Here are some quotes I got today:
    Fannie Mae 4% 2010 98 1/2 Yield to Maturity 4.6%
    Fannie Mae %5 2017 99 1/2 Yield to maturity 5.1%

    In my opinion CATY bought Fannie paper instead of creating or purchasing sub prime crap mortgages.

    No way will CATY's equity be wiped out by write offs.

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    • You need to account for the loss on the $ 32 million preferred stock of Freddie and Fannie on the book and the the $ 156 million of mark down on the $ 211 million of CMO on the book. Caty has a big write down coming for year end.

 
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