JJ Hornblass's Blog – March 2009 Archive (7)

Say Ah: GMAC CDS Spreads Widen Way Out

GMAC LLC CDS spreads widened considerably today to 1,847.45 basis points, an increase of 241.69 basis points, or 15.05%. (See here.) Only GM CDS widened more today. Blame the threat of a GM bankruptcy.

Added by JJ Hornblass on March 31, 2009 at 5:58pm — No Comments

Is a Backlash Coming?

Warning: you are not going to like what you read in this blog.

You won't like it because I am starting to fear that auto financiers -- arguably the most responsible of all consumer credit providers during the drunken credit boom of the 2000s -- could be the next target for consumer advocates criticisms of recipients of federal funding.

In reading a review of the Term Asset-Backed… Continue

Added by JJ Hornblass on March 27, 2009 at 8:00am — 1 Comment

Clyma, Salik Added to Risk Summit Speaker Roster

Douglas Clyma, the senior vice president of credit risk management at AmeriCredit Corp., and Boaz Salik, principal of FischerJordan, the New York consultancy, have been added to speaker faculty of the upcoming Auto Finance Risk Summit.

The Auto Finance Risk Summit, the only industry event focused on auto… Continue

Added by JJ Hornblass on March 26, 2009 at 11:30am — 1 Comment

Liquidity Programs Start Looking Good to Investors

Like a steak that had been too rare and is now looking scrumptious, the new Public-Private Investment Program (PPIP) from the Treasury Department is starting to look awfully enticing to fixed-income investors. Which is exactly how the federal government likes it.

The PPIP has two parts: a legacy loan program and the legacy securities program. The legacy loan program is being administered through the FDIC (see… Continue

Added by JJ Hornblass on March 23, 2009 at 1:24pm — 1 Comment

Treasury's Liquidity Programs Start Looking Good to Investors

Added by JJ Hornblass on March 23, 2009 at 1:22pm — No Comments

Treasury's Liquidity Programs Start Looking Good to Investors

Added by JJ Hornblass on March 23, 2009 at 1:21pm — No Comments

A Cure for Systemic Risk

By JJ Hornblass and Boaz Salik

Of all the massive corporate failures that precipitated our current financial crisis, AIG’s has stood out because it endangers the overall economy with such a large quantity of distressed assets. Its risks are so acute that the federal government has felt obligated to bail it out not once, twice or three times, but four. The $173 billion already pumped into AIG will likely not be the last of the government’s rescue funds.

The gravity… Continue

Added by JJ Hornblass on March 17, 2009 at 9:37am — 3 Comments