Andy Beal Needs You!

Featured in the WSJ today, Andy Beal is ramping up his put-back campaign against the evil originators.  If you own any of the following bonds in the list below, you may have a friend in Andy:

CXA Corporation's Tranches Owned

ACE, BALTA, BSABS, CMLTI, GSAA, JPMAC, GSAMP, LBMLT, MLMI, MSAC, RAMC, SABR, SASC, SURF, SAST, SVHE.  All the good stuff.

It seems as if Andy went long all the right kinds of resi at very good prices, no doubt.  He's made a fortune a few times over and it's good to see he's still doing it.   Bloomberg and WSJ have covered him pretty thoroughly in the past.  I suggest the following reads for the unacquainted.

1. Maverick Banker in Texas Chases Distressed Assets - WSJ
2. Beal Becomes Billionaire with FDIC Assets as He Tops Poker Pros - Bloomberg

~Jingle Male

Disclaimer: Not long any of those bonds nor am I affiliated with Andy Beal.

Louis Ranieri on RMBS in 2011

Skip to 4:00 minutes.

• Have to have a functioning MBS market again, but it has to be better.
• Covered bonds don't work for 30-year loans.
• Early 2002 was the beginning of the end with new MBS and mortgage structures
• The CDO was the straw that broke the camels back - the traditional subordinate tranche buyer who was sophisticated, was replaced with the CDO buyer.
• Core problem is still the same - no fiduciary responsibility (but he misspoke - brokers who sell a stock to a widow does not have any fiduciary duty, historically anyway).

This is mostly resi - I actually dug it up b/c Crabs of Steel mentioned he had said something about CMBS, but the video doesn't last long enough for that bit - couldn't find it with the google service either. If anyone has a link, shoot it over to me.