SEC filings and transcripts for GSAMP Trust S3, including financials, news, proxies, indentures, prospectuses, and credit agreements. Commission File Number of issuing entity: GSAMP Trust S3. (Exact name of issuing entity as specified in its Charter). Fraud Audit. Was the risk that Goldman hedged with AIG as bad as Goldman Sachs Alternative Mortgage Products’ GSAMP Trust S3?.
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Goldman said it made money in the third quarter by shorting an index of mortgage-backed securities. This issue, which is backed by ultra-risky second-mortgage loans, contains all the elements that facilitated the housing bubble and bust. Check out one of these jewels on a Bloomberg machine, and the price chart looks like something falling off a cliff. By Allan SloanFortune senior editor-at-large. How is a buyer of securities like these supposed to know how safe they are? Realized Loss Detail Report.
That’s because Goldman, like other assemblers of mortgage-backed deals, doesn’t tell investors who the borrowers are. The butcher – excuse us, the investment banker – gives customers what they want. Securities are simpler to deal with and can be customized. Next Pass Through Rate. Securities are simpler to deal with and can be customized. It gets even hinkier. How is a buyer of securities like these supposed to know how safe they are?
Any loan losses would first hit the X tranche. Dates correspond to distribution dates. Indeed, the monthly reports issued by Deutsche Bank Chartsthe issue’s trustee, indicate that GSAMP has recovered almost nothing on its foreclosed loans.
GSAMP Trust 2006-S3
Average PSA Approximation over period between the nth month and mth month: So if a borrower decided to keep on paying the first mortgage but not the second, the holder of the second would get bagged. July 25, Distribution. There are trillions of dollars of mortgage-backed securities in the world for the same reason that Tyson Foods offers you chicken pieces rather than insisting you buy an entire bird.
Goldman peddled the securities in late April Goldman’s profits came from hedging the mortgage securities it keeps in inventory in order to make trading markets.
Someone wants a safe, relatively low-interest, short-term security? Of course, Goldman knew a lot about this market: For more on Wall Street and the financial crisis: If house prices fell and you couldn’t make your mortgage payments, you’d get to walk away with nothing or almost nothing out of pocket.
Gsamp Trust He4, Author at Last10K
Loss Severity Approximation for Current Period. Gxamp does toxic waste get distilled into spring water? But in we hit an inflection point. That spread was supposed to provide a cushion to offset defaults by borrowers. Pmnts, 10 Month Prior.
Goldman Sachs’ House of Junk (Fortune, ) | Fortune
Weighted Average Months to Maturity Original. If the holder of the first mortgage foreclosed, there was likely to be little or nothing left for GSAMP, the second-mortgage holder. Average Loss Severity Approximation over period between nth month and mth month: Interest rates on mortgages stopped falling.
You can see why borrowers lined up for the loans, even though they carried high interest rates.
Current Scheduled Payments 2 Month Prior. Weighted Average Max Rate Current. Similarly, Wall Street carves mortgages into tranches because it can get more for the pieces than it would get for whole mortgages.
As long as housing prices kept rising, it all looked copacetic. Current Scheduled Payments 6 Month Prior. Weighted Average Seasoning Trjst. We say “about” because some of the tranches are floating-rate rather than fixed-rate.
Even Goldman may have lost money on GSAMP—but being Goldman, the firm has more than covered its losses by betting successfully that the price of junk mortgages would drop. By Allan Sloan April 12,