CW debt obligation

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tourbillon_IHB

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I was told by a friend that CW has a debt obligation topping 200b. If that is true, then the 2B BofA injected into CW this week probably won't go too far if the default rate increases beyond the current level
 
IMO, BofA was simply positioning itself to take the loan servicing business from CW. By purchasing preferred stock, they cut in front of all common stock shareholders for claims to assets. The bond holders will not want the servicing business, so BofA put themselves at the head of the line to pick up this business.
 
Rumor is of the $11.5 bil line of credit that countrywide used which the lenders were obligated to lend, BoA was in for $10 bil.
 
<p>awgee - I heard that was a rumor. It's in the 8k who gave them the cash. I haven't had chance for a close look but I didn't see BofA.</p>

<p>IR - Why do you think that the bond investors wouldn't want the servicing co.? It is one of their more profitable er I mean only profitable side of their business. </p>
 
True but in my opinion that side of the business could continue operate regardless of what happens. Since it is positive cashflow I would think they would want to keep it. Maybe I'm thinking more like an investor and not specifically a bond investor. All I know is if I had the bajillions to take their servicing business I would.
 
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