http://www.businessinsider.com/national-archive-on-gregg-lippman-jamie-mai-2016-3
Greg Lippmann at Deutsche Bank
In his interview with the FCIC, from May 2010, he set outs how he came to recognize the weakness in the US housing market.
When I looked at the home prices to defaults across America, I was struck by two things; one, the big difference between the default rate in the parts of the United States where home prices were going up three or four percent per annum, and the much, much lower default rate in places where home prices were going up more like 12 or 13 percent per annum. I was also surprised at how many people were defaulting even in those areas where home prices were going up so much, which made me question the viability of these loans in a more modest home price environment.
...
Steve Eisman at FrontPoint
His interview with the FCIC was especially entertaining. He said:
(You'll have to go to the story to see the 9 humorous statements)
...
Ben Hockett and Jamie Mai at Cornwall Capital
Here are the highlights from the memo summarizing the interview with Hockett and Mai:
The October 6, 2006 Grant’s Interest Rate Observer was what gave Cornwall the idea for their trades shorting subprime MBS through credit default swaps. The article includes a chart from Paul Singer, general partner of Elliott Associates, showing that if home prices stay flat to appreciating by 4%, the entire double-A tranche of a subprime CDO would fail.
Much more at link
= new reply since forum marked as read