American Bonded Mortgage Company

  • 1966 0216 – NYT – Grand Jury Indicts Eight In Bonded Mortgage Case, American Bonded Mortgage Company – [link]  —  1p
  • 1966 1223 – NYT – Seven Found Guilt of Securities Fraud, American Bonded Mortgage Company – [link] — 1p
    • The Securities and Exchange Commission charged the seven misled the investors by promising to guarantee their principal, plus a 7 to 8 percent profit.

Municpal Bond Defaults

  • Bond Insurance
    • Ambac
    • MBIA
  • 2008 Financial Crisis
  • Orange County, California
  • Executive Life Insurance Company
  • Mutual Benefit Life
  • 1995 0726 and 0727 – GOV (House) – Debt Issuance and Investment Practices of State and Local Governments, Richard Baker (R-LA) – [PDF-1011p-GooglePlay]
    • Richard C. Lehman, President, Bond Investors Association
      • Chapter 33 – Municipal Bond Defaults – [Bonk: What is the Title of the Book?]
      • (p150) An interesting question arising in third-party guaranteed defaults is what happens when the guarantor collapses.
      • When the letter-of-credit bank or insurance company goes under, or the corporate guarantor goes bankrupt, there is no more credit enhancement or guarantee on the bond issue.
      • In these instances bondholders usually lose.
        • Such was the case with the $1.6 billion of munis backed by Executive Life and the $600 million of housing issues backed by Mutual Benefit Life Insurance Company.  
    • House – Committee on Banking and Financial Services – Subcommittee on Capital Markets, Securities, and Government Sponsored Enterprises

Bond – Index

Gretchen Morgenson

  • 1997 04-05-06 – Forbes – 2002p – dn790009.ca.archive.org/0/items/forbes159aprforb/forbes159aprforb.pdf
    • 1997 0407 – Forbes
      • Cover –  Index Funds – Riskier Than You Think
      • p90-96 – What the Sales Brochure Didn’t Tell You. Stock index funds: taking a closer look S&P 500 index funds are all the rage. Are they as safe as you think. Can there be too much of a good thing? Better read on., By Gretchen Morgenson 
  • 2008 0618 – NYT – MBIA Debt is Setting Up Standoff with Regulators, By Gretchen Morgenson and Vikas Bajaj – [link]
    • The risks associated with the vast, unregulated market for credit default swaps played a crucial role in the bailout of Bear Stearns.
    • Now these financial instruments are taking center stage in another Wall Street drama: whether regulators will let MBIA, the big bond insurance company, renege on a promise to shore up a crucial unit with $900 million in capital.
  • 2008 0809 – NYT – Naked Came the Speculators, By Gretchen Morgenson – [link]
    • Still, Mr. Dinallo said, the valuations of C.D.S.’s remain absurdly optimistic on both the books of the bond insurers who wrote them and the companies who bought them.
      • As regulator in this particular poker game, he gets to see both parties’ hands.

Mortgage Pass-Through Bonds

  • 1990 – SOA – Cash-Flow Projection Methods and Assumptions, rsa90v16n4a20 – Society of Actuaries – 28p
    • (p6) – MORTGAGE PASS-THROUGH BONDS FLOW OF FUND
  • 2020 Q1 – FHLBC – Balance Sheet Leverage Strategies Using Agency MBS – [link]
  • 1989 – FRB-KC – The Prepayment Risk of Mortgage-backed Securities, By Sean Becketti – 15p

    • Since their creation in 1970, mortgage pass-through securities have played an increasing role in the portfolios of depository institutions.

      • By 1988, savings and loan associations held 16 percent of their assets in mortgage-backed securities (MBSs).

      • Commercial banks also have been increasing their share of the MBS market in recent years; they currently hold 3 percent of their assets in MBSs.

      • Moreover, the participation of commercial banks in this market is likely to increase since mortgage pass-throughs receive favorable treatment under risk-based capital guidelines recently approved by federal regulators.

Mortgage Bonds

  • 1927 – AP – The Guarantee of Mortgage Bonds by Surety Companies, by Edward L. McKenna, Ph.D., Assistant Professor of Insurance, Wharton School of Finance and  Commerce – 7p
  • I was very interested to see Kin’s earlier work about the delinquencies versus the Frank Russell, because those of us who do a lot of work in this tend to view a commercial mortgage as a derivative product.
    • When you loan money on a mortgage, you’re really buying a commercial mortgage bond.
    • What really occurred is that you bought a risk-free bond and sold a put option.
      • And the put option is on the value of the property, in that the borrower always has the right to send the keys to you in total defeasance of the debt, if it’s a nonrecourse loan. And moat of these are.
    • This work is sort of an options analysis, and we’re going to get to that shortly.

—  Walter C. Barnes, not a member of the Society, is on the faculty in the Real Estate Department at the University of Wisconsin-Madison and is a Principal of Mortgage Analytics in  Madison, Wisconsin

1994 – SOA – Credit Risk Study, rsa94v20n113 – Society of Actuaries – 20p

High-Yield Bonds

  • Harold G. Fraine pioneered use of the term “high-yield bond” in 1937.

1994 – AP – Fraine’s Neglected Findings: Was Hickman Wrong?, by Martin S. Fridson, Financial Analysts Journal, Vol. 50, No. 5 (Sep. – Oct., 1994), pp. 43-53 (11 pages), NBER, Study – JSTOR

1936 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Adolph J. Sabath (D-IL) 

  • 1936 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Adolph J. Sabath (D-IL)  —  [BonkNote]
  • 1936 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Part 19, Adolph J. Sabath (D-IL)   —   [BonkNote]
  • 1936 December 1, 2, 3, 7, 8 – GOV (House) – Investigation of Real Estate Bondholders’ Reorganizations – Part 20 – Adolph J. Sabath (D-IL)   —   [BonkNote]
  • 1935 – LR – A Functional Study of the Operation of Bondholders’ Protective Committees in Realty Reorganizations, Columbia Law Review, Vol. 35, No. 6 (Jun., 1935), pp. 905-916 (12 pages), Published By: Columbia Law Review Association, Inc – jstor –
  • 1938 – LR – Corporate Reorganization — Bondholders’ Committees — Fiduciary Obligations, by Oscar Leak Tyree – 9p
  • 2010 – NBER – The Anatomy of a Residential Mortgage Crisis: A Look Back to the 1930s, by  Kenneth A. Snowden – 33p
  • 1936 0315 – NYT – Title Case Laxity is Laid to Courts; Accused by Sabath Committee Counsel of ‘Politics’ in Naming Referees. Sees a ‘Legal Monopoly.’  A Dozen Firms Are in Control of Reorganizations Here, Kraushaar Charges – [link]
  • Part 5 – July 8, 9, 1935 – Investigation of real estate bondholders’ reorganizations. At New York, N.Y.
  • Parts 9 and 10
    • Part 9 – (p6)
    • Part 10 – (p714)
  • Parts 15-18 – 1473p
    • Part 15 – (p6)
    • Part 16 – (p780) – NOVEMBER 25 , 26 , 27, 29, 30 , 1935
    • Part 17 – (p1124)
    • Part 18 – (p1214)
  • Parts 19  and 20 – [1915p-GooglePlay]
    • Part 19 – (p6-946) – 1936 – November 30, December 4, 5, 9, 10, 15, 28, 29 – Chicago, ILL
    • Part 20 – (p948-1906) -1936 – December 1, 2, 3, 7, 8 – Chicago, ILL 

Covered Bonds

  • 2010 0915 – GOV (Senate) – Covered Bonds: Potential Uses and Regulatory Issues
    • [PDF-202p, 
    • 2010 0915 – Testimony of Kenneth A. Snowden, Associate Professor of Economics, University of North Carolina at Greensboro – 19p
    • Senate – Committee on Banking, Housing, and Urban Affairs On Examining Covered Bonds, Their Potential Uses, and Regulatory Issues

American Bonded Mortgage Company

  • 1966 0216 – NYT – Grand Jury Indicts Eight In Bonded Mortgage Case, American Bonded Mortgage Company – [link]  —  1p
  • 1966 1223 – NYT – Seven Found Guilt of Securities Fraud, American Bonded Mortgage Company – [link] — 1p
    • ⇒  The Securities and Exchange Commission charged the seven misled the investors by promising to guarantee their principal, plus a 7 to 8 per cent profit.
  • (p232) – On February 15, 1966, in the Southern District of Florida, Mark H. Kroll and seven others were indicted for fraud in the sale of securities and mail fraud.
    • Operating as the American Bonded Mortgage Company, Inc., Pan American Surety Company and Michigan Surety Company, the defendants are alleged to have falsely represented the nature and safety of mortgage participations sold by them.

1966 – Attorney General – Annual Report of the Attorney General of the United States – [PDF-517p-GooglePlay]

  • https://www.sec.gov/news/digest/1962/dig090662.pdf
    • ASPIC IMVESTMETS REORGANIZATION. The SEC has filed an appearance in the Chapter X proceedings for the reoraaaiaatiOD of Aspic Investments Corporation. Miami. Florida pending in the United States District Court in Miami.
    • The Debtor’s voluntary petition for reorganization, filed on June 29, 1962, was approved by Judge Emett C. Choate on July 25, 1962, and Thomas J. Bomar was appointed tru.tee. The Debtor is a mortgage broker which provided mortgages sold to investora by American Bonded Mortgage Company (“ABM”) , including mortgages on real property known as Apollo Beach, located near T~a, Florida, and owned by Flora Sun Corporation. Approxi.. tely $7,500,000 face amount ot mortgases sold by ABH are outstanding, and held by about 2,000 investors. An involuntary Chapter X petition for reorganization of ABH has been filed by creditors and is now pending. A voluntary Chapter X petition for reorganization of Flora Sun Corporation has been approved by the Court. The Debtor also owns a real estate development known as Old
      South Plantations, located near Fort Myers, Florida. Total assets of the Debtor are stated to be $l,838P~
      including land carried at a cost of $1,666,000. Liabilities total $1,339,400, including $1,300,000
      of real estate mortgages.