Items Tagged with 'Balance sheet'


  • CNBC survey: Yes, the Fed will raise interest rates in December

    Will likely begin balance sheet reduction in October
    A new survey conducted by CNBC shows industry experts are expecting the Fed to raise interest rates in December. While market prices suggest less certainty, 76% of respondents believe the Fed will raise rates. What’s more, many of them also believe the Fed will begin to reduce its balance sheet in October. Here’s what that could mean for the economy.
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  • FOMC minutes reveal when Fed may shrink balance sheet

    Looks to happen sooner than markets expected
    The Federal Open Markets Committee released minutes from its March meeting, showing it may shrink its balance sheet sooner than the market expected. Members didn’t give any specifics on how the reduction will occur, or even when, but did comment on a general time frame.
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  • Two Harbors increased MSRs by how much?

    This is an astonishing number
    CFO Farrell said that going forward the real estate investment trust will break out MSRs separately on the balance sheet as well as provide additional detail around servicing income and the assets collateral attributes.
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  • Dude, where's my liquidity?

    PennyMac Mortgage Investment Trust is planning to buy up newly issued loans and package them into bonds. A posting at Bloomberg has the scoop today. The conduit arm of PennyMac would buy the mortgage loans as short-term investments. It sounds promising in terms of short-term funding, but the question remains whether this conduit vehicle will last: Has the industry already forgotten the short-lived MLEC dreams?
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  • $150bn of Assets May Return to BofA's Balance Sheet in 2010

    Bank of America [stock BAC][/stock] may soon bring some $150bn of off-balance-sheet assets back onto its balance in Q110 with the implementation of a new accounting rule, FAS 167, potentially pressuring its capital reserves. Of the assets the bank says it may bring to its balance sheet, home equity conduits account for an estimated $12bn, while card securitizations account for $85bn, and other variable interest entities make up the remaining $53bn, according to an equity research note by Keefe, Bruyette & Woods' (KBW) Jefferson Harralson.
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  • Wall Street Execs Weigh in on Securitization Accounting

    In plain English, much of the securitization model that has fueled the modern mortgage market is tied to what's known as a Qualifying Special Purpose Entity -- or QSPE for short, and often called "the Q" in industry slang. QPSEs receive off-balance sheet treatment, or "sale accounting" treatment, that has largely enabled much of the growth in modern secondary markets.
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  • FASB May Delay Action on QSPEs

    In the acronym soup that's been confronting investors since the mortgage and credit mess began, perhaps none will end up more critical than the QSPE -- that's qualifying special purpose entity, a concept borne of accounting rules that allow banks and financial institutions to keep certain assets off of their balance sheets. Like MBS/ABS, for example.
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  • As Losses Mount, Banks Want Rewrite of “Fair Value”

    To say that write-downs have many bank’s income statements and balance sheets in a pinch is probably an understatement; the mortgage and credit mess has hit nearly every major financial market participant with a vengeance, to a tune louder than $300 billion thus far. And it’s likely to continue to do so, if you believe many of the analysts that follow credit markets closely enough.
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