Macro
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month values ▾
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|
| -0.26 | -0.35 | -0.40 | -0.23 | -0.45 | -0.45 | -0.50 | -0.21 | -0.55 | -0.55 | -0.60 | -0.60 |
Subprime lenders collapsed in a cascade (Ownit, New Century, American Home Mortgage), home prices went into freefall, and the August credit seizure froze mortgage markets; a deepening disaster for property owners.
How this mood is scored ▾
New Century Financial, the second-largest U.S. subprime lender, filed for Chapter 11 bankruptcy amid a surge in mortgage defaults and internal financial mismanagement, resulting in 3,200 job cuts. The collapse raises concerns of contagion spreading to the broader mortgage and banking sectors, with potential buyers lined up for its assets and court-supervised sales pending.
American Home Mortgage collapsed as major Wall Street banks halted funding, triggering a likely bankruptcy. Unlike most failed lenders, it focused on Alt-A and adjustable-rate mortgages, not subprime, affecting investor confidence and contributing to a 1.1% drop in the Dow. The failure signals broader stress in the mortgage sector, with significant implications for financial markets and shareholder value.