Write-offs on mortgage-linked assets to top $60bn | FT Alphaville

Write-offs on mortgage-linked assets to top $60bn

Big investment banks and other institutions will be forced to increase their write-offs on mortgage-linked assets to $60bn-$70bn in the coming months, according to some of their own analysts. Citi projects $64bn worth of write-downs of mortgage-related investments. Of this, $44bn represents estimated write-offs by the 16 largest dealers on holdings of listed CDOs. The forecast of the losses – $40bn more than the banks have acknowledged so far – came as concerns about the health of banks escalated. Moody’s put on review for downgrade debt issued by 16 different SIVs. The downgrades included for the first time some large bank-sponsored vehicles that had been thought to be the strongest and most likely to survive.