Monday, September 15, 2008

How Bad Are SubPrime/AltA Mortgages?

From the Wall Street Journal:

Lehman marked them down by about 2/3rds from face value.

The chart suggests that if AIG, another player, copies Lehman's markdowns, they will knock off another $15Bn from their asset column.


AltA paper is (that is, WAS) considered decent stuff. Not prime, but decent.

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