Comments on: Sale of Bank Hapoalim MBS Portfolio Says Prevailing Valuations Too High http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html Sun, 22 Nov 2009 07:56:24 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Ginger Yellow http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html#comment-8676 Ginger Yellow Wed, 28 May 2008 17:44:00 +0000 http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio-says-prevailing-valuations-too-high/#comment-8676 Not sure what you mean, Reino. The underlying in a super senior mezzanine ABS CDO are typically BBB or BB, while in a high grade they tend to be AA or A. AAAs didn't yield enough to put in a CDO. So the super senior marks aren't lower than the underlyings. Not sure what you mean, Reino. The underlying in a super senior mezzanine ABS CDO are typically BBB or BB, while in a high grade they tend to be AA or A. AAAs didn’t yield enough to put in a CDO. So the super senior marks aren’t lower than the underlyings.

]]> By: Reino Ruusu http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html#comment-8487 Reino Ruusu Sat, 24 May 2008 02:06:00 +0000 http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio-says-prevailing-valuations-too-high/#comment-8487 Those Morgan Stanley figures don't make any sense. Why would a super-senior CDOs be marked lower than the underlying raw materials? Is is that these tranches are paying such lousy interest rates that they are not even covering inflation?<br/><br/>At these prices, they might be good candidates for profiting from CDO liquidations. It might be a good idea to pay 50 cents on the dollar for negative real interest bearing paper if it is shortly liquidated with losses of less than 50 cents. Those Morgan Stanley figures don’t make any sense. Why would a super-senior CDOs be marked lower than the underlying raw materials? Is is that these tranches are paying such lousy interest rates that they are not even covering inflation?

At these prices, they might be good candidates for profiting from CDO liquidations. It might be a good idea to pay 50 cents on the dollar for negative real interest bearing paper if it is shortly liquidated with losses of less than 50 cents.

]]> By: Yves Smith http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html#comment-8428 Yves Smith Fri, 23 May 2008 05:02:00 +0000 http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio-says-prevailing-valuations-too-high/#comment-8428 Anon of 9:29 AM,<br/><br/>If you had clicked the link, you would have seen that Hapoalim hired Deutsche Bank to shop the trade. This was a market price, not a "Pimco got lucky". Anon of 9:29 AM,

If you had clicked the link, you would have seen that Hapoalim hired Deutsche Bank to shop the trade. This was a market price, not a “Pimco got lucky”.

]]> By: Ginger Yellow http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html#comment-8397 Ginger Yellow Thu, 22 May 2008 16:10:00 +0000 http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio-says-prevailing-valuations-too-high/#comment-8397 FYI, this is from Hapoalim's 2007 annual report, giving a breakdown of the portfolio:<br/><br/>"As at December 31, 2007, the value of the portfolio in New York is composed of the following<br/>MBS: NIS 1,516 million (USD 394 million), prime; NIS 7,971 million (USD 2,073 million), ALT A;<br/>NIS 1,464 million (USD 381 million), ALT B; and NIS 953 million (USD 248 million), CMBS.<br/>In addition, the portfolio contains pass-through MBS issued by federal agencies (FNMA, FHLMC,<br/>and GNMA).The balance of these securities as at December 31, 2007 amounts to NIS 1,605 million<br/>(USD 417 million).<br/>MBS issued may include a fixed interest rate, a floating rate, or a combination of both. As at<br/>December 31, 2007, approximately 25% of the Bank’s MBS portfolio is at fixed interest rates, while<br/>the remainder is at a floating rate or an adjustable rate (fixed rate for a predefined period, then<br/>floating rate). About USD 1.2 billion out of the MBS portfolio are Hybrid ARMs.<br/>There are also different options for repayment of the principal: in installments, in a variable<br/>repayment structure, or in a single payment at the end of the period. About USD 1 billion out of<br/>the MBS portfolio are Option ARMs." FYI, this is from Hapoalim’s 2007 annual report, giving a breakdown of the portfolio:

“As at December 31, 2007, the value of the portfolio in New York is composed of the following
MBS: NIS 1,516 million (USD 394 million), prime; NIS 7,971 million (USD 2,073 million), ALT A;
NIS 1,464 million (USD 381 million), ALT B; and NIS 953 million (USD 248 million), CMBS.
In addition, the portfolio contains pass-through MBS issued by federal agencies (FNMA, FHLMC,
and GNMA).The balance of these securities as at December 31, 2007 amounts to NIS 1,605 million
(USD 417 million).
MBS issued may include a fixed interest rate, a floating rate, or a combination of both. As at
December 31, 2007, approximately 25% of the Bank’s MBS portfolio is at fixed interest rates, while
the remainder is at a floating rate or an adjustable rate (fixed rate for a predefined period, then
floating rate). About USD 1.2 billion out of the MBS portfolio are Hybrid ARMs.
There are also different options for repayment of the principal: in installments, in a variable
repayment structure, or in a single payment at the end of the period. About USD 1 billion out of
the MBS portfolio are Option ARMs.”

]]> By: Anonymous http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio.html#comment-8379 Anonymous Thu, 22 May 2008 13:29:00 +0000 http://www.nakedcapitalism.com/2008/05/sale-of-bank-hapoalim-mbs-portfolio-says-prevailing-valuations-too-high/#comment-8379 pimco simply had a great buy....... pimco simply had a great buy…….

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