Comments on: Hypo Real Estate need for 10 billion also reveals huge problems in Spain http://www.creditwritedowns.com/2009/07/hypo-real-estate-need-for-10-billion-also-reveals-huge-problems-in-spain.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: michael http://www.creditwritedowns.com/2009/07/hypo-real-estate-need-for-10-billion-also-reveals-huge-problems-in-spain.html#comment-56791 michael Fri, 24 Jul 2009 17:42:00 +0000 http://www.creditwritedowns.com/2009/07/hypo-real-estate-need-for-10-billion-also-reveals-huge-problems-in-spain.html#comment-56791 "...what GMAC is doing in the Spanish mortgage market." As a tidbit, GMAC was offering "instant" 10,000/20,000 SFr loans on every other ad billboard in Zurich, Switzerland in around 2003. “…what GMAC is doing in the Spanish mortgage market.”

As a tidbit, GMAC was offering “instant” 10,000/20,000 SFr loans on every other ad billboard in Zurich, Switzerland in around 2003.

]]> By: Anonymous http://www.creditwritedowns.com/2009/07/hypo-real-estate-need-for-10-billion-also-reveals-huge-problems-in-spain.html#comment-56771 Anonymous Mon, 20 Jul 2009 11:55:00 +0000 http://www.creditwritedowns.com/2009/07/hypo-real-estate-need-for-10-billion-also-reveals-huge-problems-in-spain.html#comment-56771 Yes, 14,5 cents on the dollar seems extremely low at any rate, regardless of your opinion about the spanish property market. I mean, they can´t be plain mortgages, it must be some kind of levered derivative, but Spanish securitizations are usually quite plain vanilla, I don´t know of any instrument which could result in such a loss. Is there a source for the number? I would really appreciate more data. By the way, I find a little forced the way the cited article detours to talk about Spain, GMAC and the (alleged) 14 cents sale, when talking about Hypo, the conexion is a little vague (future potential losses for some foreign lenders, without even asserting if Hypo is one of them). I agree with your main thesis, though. I also think extremely unlikely that a bubble so big as the Spanish won´t cause many problems in the banking system (so far, just a medium-sized saving institution has failed). Yes, 14,5 cents on the dollar seems extremely low at any rate, regardless of your opinion about the spanish property market.
I mean, they can´t be plain mortgages, it must be some kind of levered derivative, but Spanish securitizations are usually
quite plain vanilla, I don´t know of any instrument which could result in such a loss.
Is there a source for the number? I would really appreciate more data.
By the way, I find a little forced the way the cited article detours to talk about Spain, GMAC and the (alleged) 14 cents sale, when talking about Hypo, the conexion is a little vague (future potential losses for some foreign lenders, without even asserting if Hypo is one of them).
I agree with your main thesis, though. I also think extremely unlikely that a bubble so big as the Spanish won´t cause many problems in the banking system (so far, just a medium-sized saving institution has failed).

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