Dec 5, 2007

CIBC: Citigroup has the single highest exposure to high LTV mortgage loans

High [loan-to-value] mortgage loans is the greatest risk pool of U.S. consumer loans, and Citigroup has the single highest exposure to it.

~ Analysts at CIBC World Markets, "Citigroup has biggest exposure to riskiest loans: analyst," MarketWatch, December 5, 2007, by John Spence

(The analysts estimated that Citigroup will incur losses on such loans in the range of $4 billion to $6.5 billion in 2008, or between 31% and 51% of its third-quarter 2007 total loss reserve. As a result of higher estimated provision for losses, CIBC cut its 2008 profit estimate for Citigroup by almost 10% to $2.95 a share.)

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