SASC 2005-WMC1: Distressed Subprime/Second-lien deal, Called early at 100:00! - and other truths

SASC 2005-WMC1: Distressed Subprime/Second-lien deal, Called early at 100:00! - by Victor Hong
May 6th, 2009 · No Comments
It was a play by folks who had oversold huge amounts of synthetic default protection, and then convinced the servicer (Aurora) to call the deal at 100:00. Gains from the deep-in-the-money default protection going suddenly worthless exceeded the losses from liquidating the ugly remnant loan collateral. It resembles a short squeeze of the protection owners, using single-name ABS CDS. Investors who are long protection on seasoned subprime ABS deals have become very nervous about this gaming risk.

Thank you,

Victor Hong in NYC

The truth:
http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf

Wamu's claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF

http://wamustory.com/

http://wamuqd.com/

http://www.wamu-shareholders-resources.com/wamued.html

http://wamuequity.org/history.html

http://mortgagenewsclips.com/2009/05/06/legal-piracy-sasc-2005-wmc1-distressed-subprimesecond-lien-deal-called-early-at-10000-by-victor-hong/