Despite Outflows, Global Convertibles Worth a Second Look

For more than a year investors have been taking money out of global convertible funds after loading up the prior 2 1/2 years. A few of those who pulled out money could be having regrets, given that this asset class rebounded to higher levels after the turmoil in the bond and equities markets earlier this year and again in the aftermath of Brexit.

On Wall Street

August 10, 2016

Read more: Despite Outflows, Global Convertibles Worth a Second Look

An Untapped Market

The non-Qualified Mortgage market remains a niche market. Lenders and investors are gradually increasing their appetite for these loans, but a fully functioning secondary market has yet to take off.

 

Mortgage Banking

May 2016

Read more: An Untapped Market

The Litigation Factor

Five years of litigation against FHA lenders under the False Claims Act has netted $5 billion in settlements for the federal government. But at what price? Some of the largest FHA lenders have curtailed or exited the business.

 

Mortgage Banking

April 2016

Read more: The Litigation Factor

The Consolidation Wave

The basic profile of the servicing industry is continuing to change as servicing costs continue to soar. The result has been industry consolidation, driven by the need for operational scale to absorb sharply higher compliance costs. Plus, there’s no sign of this letting up anytime soon.

 

Mortgage Banking

February 2016

Read more: The Consolidation Wave

Glass-Steagall Revisited

Reformers are calling for Washington to bring back the wall of separation between commercial and investment banking to make the financial system safer. Critics say it will weaken U.S. banking competitiveness and deliver less credit for consumers and businesses.

 

Mortgage Banking

February 2016

Read more: Glass-Steagall Revisited

Life After Liftoff

If the Fed finally starts to normalize short-term interest rates, mortgage rates will start to move higher. Housing economists say the yield on 30-year mortgages could rise to 5 percent by the end of 2016.

 

Mortgage Banking

November 2015

Read more: Life After Liftoff

Ocwen's Challenge

After trimming back its agency servicing holdings, Ocwen Financial intends to gradually shift its business model from that of a servicing specialist to a full-fledged mortgage company.

 

Mortgage Banking

October 2015

Read more: Ocwen's Challenge

The Big Shift

Over the last few years, the contours of the mortgage industry have been reshaped as non-banks have tripled their share of originations while the largest banks have scaled back.

 

Mortgage Banking

July 2015

Read more: The Big Shift

A Total RMBS Reboot

Enhanced credit-agency analysis and disclosure, better underwriting and data, and growing consensus on best practices for issuers have yet to lead to a rebound in the private-label residential mortgage-backed securities market. Many years after the meltdown, it remains a work in progress.

 

Mortgage Banking

May 2015

Read more: A Total RMBS Reboot

Filling the Fed's Shoes

With the end of the Fed’s quantitative easing, who will buy and own mortgage-backed securities in the future? Market observers expect that more buyers can be lured into the market if rates rise and spreads widen.

 

Mortgage Banking

February 2015

 

Read more: Filling the Fed's Shoes

Q&A with Jim Lockhart

Q&A with Jim Lockhart

 

The former regulator of Fannie Mae and Freddie Mac thinks it’s time for Congress to address taking the two players out of conservatorship. He also thinks the companies “overdid it” with their repurchase demands in recent years. Read his other comments on the current state of the market.

 

Mortgage Banking

January 2015

Read more: Q&A with Jim Lockhart 

Congress, Nader and the Ambulance Chasers

With allies like erstwhile consumer advocate Ralph Nader and leading congressional Democrats, trial lawyers have emerged as America's fattest cats, waging war against producer and consumer alike and exerting veto power over all attempts at product-liabilty and no-fault tort reform.

American Spectator

September 1990

Last September a school busy carrying seventy children collided with a Coca-Cola delivery truck at a crossroads in Alston, Texas. The bus veered off the highway, plunged over an embankment, and crashed upside down in a gravel pit filled with water. Twenty-one of the children, the bus driver, and the truck driver were killed. It was the worst school bus accident in Texas history.

The tragedy was followed by a travesty. Hordes of trial lawyers converged on Texas and starting bidding on clients, offering the grief-stricket families traileres, van, and new homes if they would sign contingency contracts -- which guarantee lawyers a set percentage of any damages received -- to sue the deep pockets of the Coca-Cola Company and the local government that owner the gravel pit. In April a settlement for $67.5 million was reportedly reached with the families of sixteen of the students killed.

A handful of trial lawyers walked away with $25 million, earning hourly fees that ranged from $10,000 to $40,000, according to Lester Brickman, a professor at the Cardozo School of Law at Yeshiva University in New York.

Read more here.

 

 

 

 

Robert Stowe England is an author and financial journalist who has specialized in writing about financial institutions, financial markets, retirement income issues, and the financial impact of population aging.

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