BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Wilbur Ross -- 'The King of Bankruptcy' -- mortgages the future]]>http://www.bloggingstocks.com/2007/09/21/wilbur-ross-the-king-of-bankruptcy-mortgages-the-future/http://www.bloggingstocks.com/2007/09/21/wilbur-ross-the-king-of-bankruptcy-mortgages-the-future/http://www.bloggingstocks.com/2007/09/21/wilbur-ross-the-king-of-bankruptcy-mortgages-the-future/#commentsFiled under:

Wilbur Ross loves distress. When industries are suffering near death - such was the case with steel and textile mills - Ross has figured out creative ways to capitalize on things and, yes, make a tidy fortune.

His latest target? It's the mortgage sector.

No doubt, it's not easy to be bullish on this. But Ross' philosophy is that - where there is bankruptcy, there is opportunity.

So according to a story on Bloomberg, Ross is willing to pay a cool $435 million for loan servicing division of American Home Mortgage Investment Corp.

The servicing business is usually a cash cow and as a result, should be a good foundation for consolidating the industry.

As with any savvy investor, Ross looks to the long term. That is, he knows that mortgages are necessary. So why not buy up a big piece of the market when prices are dirt cheap?

Seems smart to me.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Wilbur Ross -- 'The King of Bankruptcy' -- mortgages the future originally appeared on BloggingStocks on Fri, 21 Sep 2007 19:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>American Home MortgageAmericanHomeMortgageBankruptcyWilber RossWilberRossFri, 21 Sep 2007 19:15:00 EST<![CDATA[Dealmaker Wilbur Ross sees gold in subprime meltdown]]>http://www.bloggingstocks.com/2007/08/09/dealmaker-wilbur-ross-sees-gold-in-subprime-meltdown/http://www.bloggingstocks.com/2007/08/09/dealmaker-wilbur-ross-sees-gold-in-subprime-meltdown/http://www.bloggingstocks.com/2007/08/09/dealmaker-wilbur-ross-sees-gold-in-subprime-meltdown/#commentsFiled under: , , ,

Last year, Wilbur Ross warned about problems in the financial markets. That is, there would be issues with liquidity and that dealmakers - especially on the private equity side - were paying too much on transactions.

So far, he's looking prescient. Then again, Ross is a restructuring guru and has been spot-on with plays on steel and telecom.

Well, BusinessWeek.com has a great interview with Ross.

What is his perspective on the latest turmoil on subprime mortages?

Interestingly enough, Ross's investment firm -- W.L. Ross & Co - lent $50 million into American Home Mortgage Investment, which went bust because of iffy mortgages.

So will there be a turnaround in subprime? He thinks so - but don't rush in. After all, Ross looks at the long haul.

Essentially, he thinks that the subprime market is valid - and that there's a need for it. But, the problem was that loans had rates that did not reflect the risk. Ross calls it "risk-ignored rate of return."

To get the full interview, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Dealmaker Wilbur Ross sees gold in subprime meltdown originally appeared on BloggingStocks on Thu, 09 Aug 2007 15:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>housingmortgagesSubprime mortgagesSubprimeMortgagesWilber RossWilberRossThu, 09 Aug 2007 15:15:00 EST