Citadel Servicing has raised $200 million in capital to originate residential subprime mortgages. Does this mean subprime lending is "back"? Answer: yes and no.
Officials at Redwood Trust took pains last week to defend differences in the real estate investment trusts business model compared with other REITs that focus on investing in mortgage-backed securities. Some investors have been critical of low dividend payments from Redwood, but the REIT said its dividend payments are not directly comparable to other REITs. Analysts and investors puzzle about how to categorize Redwood and how to value our company, Martin Hughes and Brett Nicholas ...
Just when you thought the debate over fair value and historical amortized cost has faded into the sunset, along comes a new empirical study that reinforces the view that fair-value calculations are a better predictor of bank failure. Published by the American Accounting Association, the study suggests that leverage based on fair value provides the earliest signal of financial trouble at least two to three years prior to failure compared to other measurements. This finding is consistent with ...