Comments on: Something to think about while shopping…

By: Michelle Leder

Michelle Leder — Thu, 24 Jan 2008 22:37:15 +0000

I don’t know, but maybe one of my other smart readers knows. Unfortunately, I’m pretty new to 10-D filings.

By: P_Dee

P_Dee — Thu, 24 Jan 2008 12:29:45 +0000

Does anyone know what requires BAC to make this 10-D filing with the SEC and not to the trusts’ trustees for distribution? Can anyone please explain or make reference to sites that explain the standard required disclosures for other asset-backed trusts?

Much thanks in advance.

By: Robert Hackett

Robert Hackett — Fri, 28 Dec 2007 05:40:31 +0000

Likewise, I agree with Robert. In my community (Irvine CA), homes range in value from $400k to about $2.5m. In driving along the roads, one is just as likely to spot a minivan or Ferrari in either end of the spectrum.

By: Robert

Robert — Fri, 28 Dec 2007 00:33:20 +0000

In the Bay Area at least, BMW leasers are probably very much in the center of the sub-prime mortgage fiasco.

With our outrageous housing prices, a couple can make $200,000 combined, and still have a no money down, interest only mortgage on a $900,000 fixer-upper in an up-and-coming neighborhood. And it is quite likely they would drive a 3-series BMW, Lexus IS, etc.

You skip a few car payments first before you miss your house payment…

By: Michelle Leder

Michelle Leder — Thu, 27 Dec 2007 14:30:14 +0000

Agreed, Jaime. I certainly don’t want to be one of those journalists who touts a 30-fold increase without putting it into perspective. Thanks for your feedback.

By: Jaime @ Fitzgerald Analytics

Jaime @ Fitzgerald Analytics — Thu, 27 Dec 2007 00:47:48 +0000

Michelle,

Great blog! Enjoyed your appearance on “Marketplace” this evening.

On this post specifically, I think it’s very timely to encourage readers to focus more of our “footnote time” on clues to development of the subprime situation.

That being said, I’d recommend caution in our interpretation of the 1-month change in 90-day delinquencies for the BMW Vehicle Leasing Trust. Because the trust is only two months old, it may be too early for increases (even 30-fold ones!) to be statistically meaningful.

This brings us back to a great point you emphasize quite often on your blog, which is that footnote-readers should be especially attentive to **Changes** in footnotes (e.g. something is true that wasn’t true before…). To apply this best practice to reports that contain updates on credit performance of asset-backed credit trusts, we’d want to compare against the results at other, similar trusts at the same stage in their “life cycke” (for example, how did BMW’s similar trusts, issued a year earlier, perform in month #2…)

Again, thank you sincerely for your contributions to the world of footnote literacy!

Sincerely

Jaime Fitzgerald
President
Fitzgerald Analytics, Inc.