Excerpt from: Individual Equities CFDs and Spread Bets
|
 |
| November 28, 2007 | | Placing spread bets on financial stocks | Spread betting and contracts for differences on U.S. stock market individual equities should take into account that even though Citi received a cash infusion, other financial stocks are still taking a bit of a hit. Reuters reports on credit hits and U.S. individual equities:
Highlighting the ongoing stream of credit hits, No.2 U.S.
mortgage lender Wells Fargo said late on Tuesday it would take a
$1.4 billion charge in the fourth quarter, mainly on higher
losses from home equity loans.
U.S. housing finance company Freddie Mac said it would halve
its quarterly dividend and sell $6 billion in preferred stock to
bolster capital in anticipation of mortgage-related losses. Analysts at JPMorgan Chase estimated that losses on
collateralised debt obligations backed by subprime mortgages
could climb as high as $260 billion. | | |
|
|
