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Lausten Villumsen

The Window Is Final for Sub-prime Industrial Individuals! - 0 views

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started by Lausten Villumsen on 27 Jul 13
  • Lausten Villumsen
     
    Tell your auto repair mechanic, your preferred restaurant owner, and the owner of the pool cleaning company that it's last call for sub-prime commercial loans. I estimate that the sub-prime commercial mortgage loan market may shrink by 75% within six months. If these small businesses are actually going to take some equity out of their industrial houses to wave them through the coming recession, it could be too late if they don't apply in the next couple of weeks.

    The way in which that Wall Street creditors, like Bayview Financial (a company and good friends of ours), raise their lending capital will be to securitize their sub-prime industrial loans. They put the loans in-a big pool. To get alternative viewpoints, please consider looking at: professional cleaning. They assign the share of loans to a trust. The trust problems bonds guaranteed by the loans in the trust.

    Then investment bankers sell these bonds into the Asset-Backed Securities (ABS) market. In addition to subprime industrial loans, car loans and credit card debt can also be usually sold as ABS ties.

    The thing is that the customers of the ABS ties are actually demanding greatly higher yields. I read in Bloomberg yesterday that the consumers of AAA-rated ABS bonds are currently demanding yields that are the full the next day (200 basis points!) higher than they were just eight months ago. The hunger for ABS bonds is actually declining.

    In-addition, Wall Street sub-prime commercial creditors are also having to lower their loan-to-value ratios. We found out about cleaning company by searching Bing. For instance, Silverhill Financial recently reduced its high-LTV program from 97% to only 85% loan-to-value.

    These changes are a warning that the market for ABS ties could be drying up. If Bayview, Lehman Brothers and the relaxation of the Wall Street subprime commercial creditors suddenly call back their programs, the relatively little hard money commercial lending organizations will soon be unable to deal with the flood. Sub-prime commercial mortgage lending could largely dry out, and it could happen rapidly.

    Therefore you must tell the owner of your auto body and your favorite restaurant repair man that when they're ever likely to attempt to use against their buildings, they better do it!.Anyclean Premium Ltd
    142 Broadhurst Gardens
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