Wow, there's just not much left to say for New Century Financial
"As of March 9, 2007, all of the Company's lenders under its short-term repurchase agreements and aggregation credit facilities had discontinued their financing with the Company or had notified the Company of their intent to do so."
In other words, it looks like ain't no one givin' 'em any money no more. Not Morgan Stanley
That's a major problem because, last I checked, swapping money from one group to another was how New Century made ends meet. Now that Wall Street has lost its appetite for funding the U.S. sub-prime fantasyland, it has not only clamped down on New Century, but it's demanding a few do-overs. Unfortunately, New Century can't afford to buy back all those notes gone bad, according to this final tidbit, "The Company and its subsidiaries do not have sufficient liquidity to satisfy their outstanding repurchase obligations under the Company's existing financing arrangements." (That was hidden even lower in the press release. Note to self: Read all future New Century press releases backwards.)
Will there be anything left for the carrion birds that do get a seat at this carcass?
Bank of America is an Income Investor pick.
Comments? Bring them to Seth's CAPS blog.