NEW YORK (AP) -- American International Group on Thursday told investors the housing market would have to spiral to Depression-era levels before the insurer would be harmed by its exposure to the residential mortgage market.
Cliff Gallant, equity analyst with Keefe, Bruyette & Woods Inc., estimates that of AIG's $1.034 trillion in assets at June 30, it has some $3 billion to $5 billion that could go bad in subprime defaults -- a thin slice of the overall pool.
It amounts to about $1 per share in exposure, "a reasonable worst-case scenario," he said.
As conditions in the credit market have tightened, investors have been sensitive to any sign of a ripple effect, in which the fallout from defaults on subprime loans would spread to other parts of the lending market. Any news of subprime mortgage or credit problems has sent stock prices reeling; on Thursday, the Dow Jones industrials were down by triple digits on concerns about liquidity in the credit markets.
.
欢迎来到华新中文网，踊跃发帖是支持我们的最好方法!
Disclaimer:
My posts are solely for discussion purposes and it is not trade recommendation.
－
