After announcing a decline in net income of roughly 60% from the 3Q06, Citigroup blamed the drop in earnings on the weak performance in its fixed income credit market activities, write-downs in leveraged loan commitments, and increases in consumer credit costs. The firm announced losses on approximately $1.3 billion pre-tax of subprime MBS that were being warehoused for future CDOs, CDO positions, as well as leveraged loans warehoused for future CLOs. The bank also announced losses of approximately $600 million pre-tax in fixed income credit trading as a result of significant market volatility and the pricing dislocation.
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All four of the class A tranches benefit from total initial hard credit enhancement of 13.80%, while the B and C classes of notes are covered by 10.6% and 6.0% in initial hard credit enhancement.
2h ago -
Yields are expected to range from 6.3% on the AAA notes to 7.4% on the BBB notes, which are priced against the three-month interpolated yield curve, and have a final schedule payment date of May 15, 2029.
7h ago -
The 30-year fixed rate mortgage fell for the first time in six weeks as the Federal Open Market Committee meeting outcome is finally priced in.
8h ago -
The securitization amount is smaller than an earlier transaction, and its AAA notes are expected to price at wider spreads than the AAA notes on the 2024-A series.
May 8 -
Bank stocks are up this year as interest rates have leveled off and there are hopes that pressure on lenders' profits could moderate.
May 8 -
Notes A, B and C benefit from credit enhancement amounting to 33.3%, 16.2% and 7.0%, and the deal's capital structure will repay investors on a combined pro-rata and sequential basis.
May 7