finance sector

Mortgage -- continue to drag down the economy -- $1 tril subprime mortgage by the end of 2008, 16% delinquency rate, 30% loss rate, $50 bil loss Loan commitments --huge pipeline of leverage loan commitments in the next two quarters, $300 bil by Nov, marked down by 5%, $15 bil SIV --focused on a few banks, Citi 80 bil Comments: --it will take at least another quarter to straighten out these issues. The sector will recover by the end of Q1 2008 questions a.asset classifications (CDO is trading or hold for sale) - unrealized gain b.Agency or 30 y mortgage