Thursday, May 31, 2007

HSBC to Sell Bonds Made of Subprime Mortgages From New Century Financial

(Bloomberg) -- HSBC Holdings Plc plans to sell bonds
backed by some of the last subprime mortgages made by bankrupt
New Century Financial Corp., once its biggest rival in the
business.

The $1 billion of subprime home loans made by New Century
of Irvine, California, that HSBC plans to package and sell as
securities on June 5 have an average age of about three months,
Fitch Ratings said in a May 29 report. New Century, whose $51.6
billion in lending last year to borrowers with poor credit
records or high debt was topped only by London-based HSBC,
stopped taking loan applications in March.


Read more at Bloomberg Bonds News

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