| Fitch Affirms 3 Classes from 2 GMAC Securitizations
The affirmations reflect adequate relationships of credit enhancement (CE) to future loss expectations and affect approximately $60.7 million of outstanding certificates. Credit enhancement for the 2000-HE2 series reflects the note insurance policy issued by MBIA Insurance Corporation, whose claims-paying ability is rated 'AAA' by Fitch. Credit enhancement for the 2001-HLTV1 series reflects the financial guaranty insurance policy issued by Ambac Assurance Corporation, whose claims-paying ability is also rated 'AAA' by Fitch. The collateral of the above transactions consists of fixed-rate closed-end home equity loans and adjustable-rate home equity revolving credit line loans creating a first or second lien on residential properties. As of the April 2007 distribution date, the 2000-HE2 and 2001-HLTV1 transactions are seasoned 82 months and 75 months, respectively, and the pool factors (current collateral balance as a percentage of original collateral balance) are approximately 10% and 7%, respectively.
Economic Preview: Jobless Claims, Consumer Credit Due Thursday
6/6/2007 3:49:26 PM Thursday will see the release of two important economic reports. In the morning, data on weekly jobless claims will be released. Later in the day, the markets will see the release of a report on consumer credit in April.
Thursday morning will also see the release of weekly jobless claims data. This report measures the number of people filing for first-time unemployment insurance, with a lower number pointing to a firmer labor market. Economists expect claims to increase slightly for the week ended on June 2, after falling 4,000 in the previous week to reach a level of 310,000.
Later in the day, data on consumer credit for April will be release. The report can give insight to the state of consumer finances and possible future spending patterns.
Financial Toxic Waste Disposal
"$503 billion is a lot of collateralized debt obligations, and a whopping 500% increase in three years is enough to make your eyeballs comically spring from your head, as in 'Booiinnnnng!'" by The Mogambo Guru Fortunately, I had been eating a very low-roughage diet for a couple of days, which worked out perfectly to keep me from making a big mess in my pants when I saw that, last week alone, Total Fed Credit was up by $3.7 billion, foreign central banks bought up another $14 billion in government and agency debt (stashing them at the Fed), and another $4.8 billion of actual, in-your-hand cash money was printed up, which comes out to about $35 for each of the 137 million Americans who have a freaking job. In one week! One! And sure enough, all this new money and credit is showing up in prices, and the Consumer Price Index, as tortured into compliance as it is, is still registering a hefty monthly increase of 0.6%.
|
