"Wells Fargo ranks among the sector's largest lenders but has been relatively unscathed so far by the implosion that has led to the closures or bankruptcies of more than two dozen subprime lenders since late last year.
Wells Fargo said the subprime wholesale lending business represented 1.6 percent of the bank's $397.6 billion in mortgage lending last year."
Ok, so for one of the largest lenders its 1.6% of their total business. Sounds horrifying. WFC is still expensive at 2.4 times book and only 3.6% dividend yield. But I don't think its going out of business because of subprime.
Yes, economic growth will probably slow due to credit risks repricing, but the credit risk repricing itself has created great opportunities to pick up some very nice yield at fire sale prices.
That is exactly what is going on in bond land.
Edited by ogm, 27 July 2007 - 04:59 PM.
