Five Things You Need to Know: Subprime Woes Now Contained to Global Risk Appetites; Oh, By the Way, Heightened Global Risk Appetites Have Peaked; Also Now Contained to Alt-A Mortgage Bonds; Now Contained to Corporate Debt Too; Comparative Math Quizzes

By Kevin Depew  APR 26, 2007 11:27 AM

What you need to know (and what it means)!


Minyanville's daily Five Things You Need to Know to stay head of the pack on Wall Street:

1.  Subprime Woes Now Contained to Global Risk Appetites 

A report by the Bank of England raises concerns that improper "distribution of risk" - of the sort that has fueled problems in the US subprime market - is related to "perverse incentives" created by loan originators in response to heightened risk appetites.  

2.  Oh, By the Way, Heightened Global Risk Appetites Have Peaked

A cooling housing market and higher interest rates have made homeowners more reluctant to tap the equity they may have built up in their residences, the Wall Street Journal observes this morning. 

3.  Subprime Woes Also Now Contained to Alt-A Mortgage Bonds

In yet mores signs that the containment is spreading, Standard & Poor's said it may lower ratings on bonds from 11 different Alt-A mortgages, according to Bloomberg. 

4.  Subprime Woes Now Contained to Corporate Debt Too

Echoing the spreading containment above, BlackRock chief Larry Fink says lenders to highly indebted companies are making many of the same mistakes that undermined the US subprime mortgage market.

5.  Comparative Math Quizzes

A glance at two separate student questions reveals how much more advanced Chinese students are at mathematics than their counterparts in the UK, the BBC says

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