Thursday, August 09, 2007
Countrywide Faces "Unprecedented Disruptions" In Debt And Mortgage-Finance Markets
Bonddad analyzes Countrywide Financial's SEC filing today and notes that Countrywide had to mark down $700 billion in prime loans by 14% to get takers. And as for subprime loans, Countrywide had to mark those down by 80% to get buyers. If Countrywide can't sell prime loans at face value, Bonddad says, then the credit crunch is really bad and liquidity just isn't there.