It looks like the worst of the bank liquidity crisis could be over. And now questions are being asked: Why weren’t these banks hedged? And who bought their high-quality Treasuries and MBS?
SPS is the nation’s largest servicer of nonprime mortgage assets. It also happens to be an orphan. The company is owned by Credit Suisse, whose new owner, UBS, isn’t likely to keep it.
The first quarter hasn’t exactly been a barn-burner for MSR sales and the recent bank liquidity crisis hasn’t helped. However, some buyers might take advantage of the fears of others.