Just read comments by Cramer that HSBC is taking a bigger loss than expected due to sub prime. New Century is getting hit too. His spin is that this will signal the FED to start cutting rates.
Again, this is a non event for AHM except for the fact the stock has been moving up the past few weeks.
Maybe this is why we are dropping so bad. You guys are r AHM has no sub prime but FT.com is reporting... "Sub-prime lenders American Home Mortgage Investment (NYSE:AHM)s and Accredited Home Lenders (NASDAQ:LEND) fell by 6.9 per cent and 7.6 per cent respectively to $33.5 and $26.81." If anyone here works for AHM, you might want to correct this.
New here and am unqualified to to express an opinion one way or the other, but why does The Financial Times consider AHM a Sub-prime lender. A snippet fron their latest article.
Financial services groups also suffered, with shares in JP Morgan down by 1 per cent to $50.71, Lehman Brothers (NYSE:LEH) down 1.7 per cent to $84.14 and Wells Fargo 1 per cent lower at $35.55. Sub-prime lenders American Home Mortgage Investment (NYSE:AHM)s and Accredited Home Lenders (NASDAQ:LEND) fell by 6.9 per cent and 7.6 per cent respectively to $33.5 and $26.81.
My reading on HSBC from release in Bloomberg they were lending not only sub prime but second trust deeds also. CNBC as usual is only reporting part of the story. Mr market is using this as a excuse to get you to sell your positions in everything. If there was a real problem the bond market would broadcast it. Incidentally I have a position in SPH which is in propane sales and until recently was yielding over 7 %. The distribution coverage was 1.7 times. I guess the theory is Global warming will eliminate the heating season.