CBIA - "California New Home Market Ends 2007 in Doldrums, CBIA Announces" (2-15-08)

"The monthly CBIA/Hanley Wood Market Intelligence (HWMI) New Home Sales and Pricing Report showed that net new home sales during 2007 in the subdivisions tracked by Costa Mesa-based HWMI totaled 61,861 homes and condominiums, compared to 89,773 in 2006, a decline of 31.1 percent. Sales of single family homes dropped by 29.7 percent, while sales of townhomes and “plexes” – duplexes, triplexes, etc. – were down 21.6 percent and sales of condominiums were down 38.6 percent. The figures for December were even more dour, with year-over-year declines just shy of 67 percent."

Bloomberg - "Gold Gains on Outlook for Lower Rates; Platinum Rises to Record" (2-15-08)

"Gold advanced in London on prospects interest-rate cuts in the U.S. will spur demand for the metal as an alternative to the dollar. Platinum rose to a record. The U.S. currency erased gains for the year yesterday after Federal Reserve Chairman Ben S. Bernanke signaled the bank may reduce interest rates further. Assets in the StreetTracks Gold Trust, the biggest fund backed by gold, have dropped 3.4 percent from a record on Jan. 14, partly on speculation the dollar would rebound this year from earlier declines."

Reuters - "Struggling Citigroup hedge fund bars withdrawals -WSJ" (2-15-08)

"Citigroup Inc has barred investors in its CSO Partners hedge fund from withdrawing their money, according to a Wall Street Journal report on Friday. Citigroup suspended redemptions in CSO, a fund specialising in corporate debt, after investors tried to withdraw more than 30 percent of the fund's $500 million in assets, said the story."

Bloomberg - "Greenspan Says U.S. Economy Is on Edge of a Recession" (2-15-08)

"Former Federal Reserve Chairman Alan Greenspan said the U.S. economy is on the verge of its first recession in six years as falling home values hurt consumer spending. Greenspan's view has evolved from a year ago, when he saw a one-in-three chance of a recession, citing slowing profit growth and becoming one of the first economists to warn of the risk. Now, Wall Street firms including Merrill Lynch & Co. and Goldman Sachs Group Inc. are forecasting a contraction in the aftermath of the worst housing downturn in a quarter century."

The San Diego Union Tribune - "Rates on 30-year mortgages hit 5-week high" (2-15-08)

"Rates on 30-year mortgages rose to the highest level in five weeks but still remained below the 6 percent level. Freddie Mac said in its nationwide survey that 30-year fixed-rate mortgages rose to 5.72 percent this week from 5.67 percent last week.Other mortgage rates were mixed, with only slight movements in any category. Rates on 15-year mortgages rose to 5.25 percent from 5.15 percent. Rates on five-year adjustable-rate mortgages dipped to 5.19 percent from 5.21 percent. Rates on one-year ARMs were unchanged at 5.03 percent."

Bloomberg - "FGIC Seeks Split to Salvage Municipal Debt Ratings" (2-15-08)

"FGIC Corp., the bond insurer stripped of its Aaa ranking by Moody's Investors Service yesterday, asked to be split in two to protect the ratings on municipal bonds it guarantees. FGIC, owned by Blackstone Group LP and PMI Group Inc., applied for a license from New York state insurance regulators to create a standalone municipal company, Brian Moore, a spokesman, said. The move would separate the unit that guarantees subprime- mortgage bonds, collateralized debt obligations and the other types of financial products that led to the ratings downgrades."

Bloomberg - "Banks at Risk of $203 Billion in Writedowns, Says UBS" (2-15-08)

"The world's biggest banks may have to book as much as $203 billion of writedowns, in addition to the $152 billion reported so far, if bond insurers the lenders rely on become insolvent, UBS AG said. MBIA Inc. and Ambac Financial Group Inc., the No. 1 and No. 2 bond insurers, are struggling to maintain their AAA credit ratings following losses on residential mortgages. Banks may be forced to write down the value of securities protected by contracts with the so-called monoline insurers if their financial condition deteriorates, Finch said. The New York-based companies guarantee the repayment of bond principal and interest in the event of defaults."

Bloomberg - "Countrywide's Overdue Mortgages Increase to 7.47%" (2-15-08)

"Countrywide Financial Corp., the biggest U.S. mortgage lender, said late loans were at their highest level in at least six years during January, adding to evidence that the U.S. housing slump is getting deeper. Overdue loans rose to 7.47 percent of unpaid principal balances from 7.2 percent in December and 4.32 percent in January 2007, according to a Countrywide statement today. Foreclosures advanced to 1.48 percent in January, also a six- year high, from 1.44 percent in December and 0.77 percent a year earlier."

Bloomberg - "Investment-Grade Defaults to Rise, Credit Models Show" (2-15-08)

"The seizure in the credit markets caused by the collapse of subprime mortgages is making investors doubt even the AAA rated securities of companies with investment-grade credentials. The Markit CDX North America Investment-Grade Index of 125 U.S. companies from AT&T Inc. to Walt Disney Co. signals the greatest risk of its members defaulting at the same time since the measure started trading in 2003, according to Royal Bank of Scotland Group Plc. The so-called default correlation model rose to 42 percent on the part of the index that's most exposed to losses, according to data compiled by Bloomberg and Milan-based UniCredit SpA. In May, the model was at 15 percent."