Citigroup probably will write down the value of CDOs by $8 billion this quarter, Mike Mayo, a Deutsche Bank analyst, wrote in a report to clients Tuesday after Merrill Lynch said it would sell CDO holdings for 22 cents on the dollar.
Citi values the securities mortgage-related bonds at the heart of the credit crisis at 53 cents on the dollar, the report said.
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FICO announced it will maintain its mortgage industry price for credit scores through tri-merge resellers at $10 for members of its Preferred Program.
A split Congress has often been a bullish recipe for Treasuries. Benchmark 10-year yields have been lower on average one and 12 months after midterms that produced such a result.
There is broad agreement that asset size alone is not the best way to measure a bank's systemic footprint. But getting equally broad consensus on another, better approach could be difficult.
The company expects to report net income between $205 million and $220 million, with positive servicing results offset by an originations miss, analysts said.
Designating the loans as credit risks gave Crescent broader authority to sell them as it shrank the CLO, allowing it to liquidate the remaining portfolio without approval from subordinated noteholders.
