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Many subprime and other risky securities lost all or much of their value.
Its stock tumbled faster this year as first the debt securities lost value, and then the insurance contracts, called credit default swaps, came under a cloud.
Its business of packaging complex mortgage bonds and other asset-backed securities lost $527 million, largely from trading declines, poorly hedged positions and lower investment banking fees.
During August, BBB-rated securities lost 6% relative to Treasurys of equal duration.
Investors who bought securities based on those loans worried they would not get the payments they had been promised, so those securities lost value.
Hybrid products, fancy exotic options, and cross-asset structured securities lost most of their appeal, both because they were often seen as unnecessary and excessively risky by clients, and because they became uneconomical for banks, as capital, funding, and regulatory compliance eroded profits.
Similar(50)
Because the government chose to pay par or 100percentt of the face value, the taxpayer has downside risk if the securities lose value but virtually no upside.
In fact, Paulson & Company had taken a short position, in hopes of profiting if the security lost value.
The company that United hired to monitor its checkpoints, Argenbright Security, lost its contract at Logan International Airport in Boston after security breaches last year.
But it has made life harder for people in our poorest communities, where wages have been undercut and job security lost.
After the security lost 70percentt of its value in a month, the lenders foreclosed on and sold 4.4 million shares during two days in May, according to a regulatory filing.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com