Subprime Lending

Barclays Warns of High Losses in Non-Agency Securities 

Barclays Capital expects high losses on collateral backing most most non-agency securitizations including jumbo, Alt-A, and option adjustable-rate mortgages. For example, the firm expects more than 70% losses on ’07 vintage subprime pools, and 15-30% on most jumbo pools. But as this has already been priced into the market, Barclays said double-digit yields in select non-agency areas remains possible.