E*TRADE FINANCIAL Corp. reported a third quarter write down of $450 million in its $3 billion ABS portfolio, including approximately $50 million of 'AAA' rated asset-backed CDOs that were downgraded to below investment grade. The affected securities were predominantly ABS CDO and second-lien securities. The company also said that it expects further write downs in the fourth quarter, exceeding the company's previous expectations. However, actual securities-related losses will depend on future market developments, including the potential for future downgrades by rating agencies, E*Trade said. Management said that it will not provide earnings expectations for the remainder of the year.
Access to a full range of industry content, analysis and expert commentary.
No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.
Have an account? Sign In