Nearly seven million housing unitswilleventually enter foreclosure, mortgage-backed-securitiesstrategists at AmherstsecuritiesGroup, a brokeragefirm that deals in MBS, estimatedon Wednesday.
In 2010, 56% of newly issued securitized mortgages were on retail properties, according to Darrell Wheeler, head of CMBS strategy at AmherstSecurities Group.
Still, at current prices, investing in certain subprime bonds carries "limited downside and possibly substantial upside, " said Joe Walsh, president of AmherstSecurities Group, a broker-dealer that focuses on mortgage debt.
Since then it has fallen back to 65.5%, and Laurie Goodman, an analyst with AmherstSecurities, reckons it would be 63.3% after excluding 2.8m homeowners who are in, or probably heading towards, foreclosure.