Hint - that is not going to happen. If AHM's future depends on it, get the engraving tools out boys, this tombstone needs a name.
""It's very hard to quantify how bad this could get," FBR's Miller says. Bankruptcy this week is not out of the question, he says.
To survive, American Home needs the secondary credit markets to stabilize, so the company can re-sell its loans for a profit. "They need it to happen very, very quickly," Miller says. (American Home is an investment banking client of FBR.) "
"Based on the foregoing, the Company at present is unable to borrow on its credit facilities and was unable to fund its lending obligations yesterday of approximately $300 million. It does not anticipate funding approximately $450 to $500 million today.
American Home Mortgage emphasized that it is seeking the course of resolution, in this environment, that is least disruptive to its business and to the many thousands of home buyers to whom it has committed to provide mortgages. The Company has retained Milestone Advisors and Lazard to assist in evaluating its strategic options and advising with respect to the sourcing of additional liquidity including the orderly liquidation of its assets."
"Nevertheless, non-performing assets, including loans more than 90 days past due, more than quadrupled from a year earlier to $515.7 million. As a percentage of total assets, they rose to 1.63 percent from 0.49 percent. The amount set aside for loan losses rose more than sevenfold to $17.2 million."Oops, and yeah, we're just gonna take $17 million of reserves against $515 million in non-performing assets..... hmmm... oh, market share is down and so is sales volume. Never mind the pulled guidance!
Is that good?
"On Wall Street, Bear Stearns Cos., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Goldman Sachs Group Inc., are as good as junk.
Bonds of U.S. investment banks lost about $1.5 billion of their face value this month as the risk of owning the securities increased the most since at least October 2004, according to Merrill indexes. Prices of credit-default swaps based on the debt imply that their credit ratings are below investment grade, data compiled by Moody's Investors Service show"
"The U.S. Census Bureau of the Department of Commerce announced today that construction spending during June 2007 was estimated at a seasonally adjusted annual rate of $1,175.4 billion, 0.3 percent (1.4%)* below the revised May estimate of $1,178.4 billion. The June figure is 2.4 percent (2.1%) below the June 2006 estimate of $1,204.0 billion."
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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