| The daily source on REITs and real estate investment |  |
- Buffett questions bond insurers' top ratings
Some municipal bond insurers don't deserve their AAA bond ratings, according to billionaire Warren Buffett. Buffett's Berkshire Hathaway has begun competing with MBIA and Ambac Financial Group in the sector. Buffett pointed to stocks whose values had dropped 95% yet still retained the top rating.  ClipSyndicate/Bloomberg
(5/5), Bloomberg
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Buffett's bond insurer sees $400 million in revenue: Berkshire Hathaway Chairman Warren Buffett says the company's new bond-insurance unit's taking off was a commentary on the distrust of rivals' AAA rating. The unit wrote 278 contracts and generated $400 million in premiums in the first quarter, more than all of the established bond insurers. Most of the policies were additional coverage for clients already insured by one of the other AAA-rated firms, Buffett said at Berkshire's annual shareholder meeting. Financial Times (free content)
(5/4)
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- Libor may remain standard as Fed raises questions
The London interbank offered rate, better known as Libor, may stave off a push to create a rival in New York as the Federal Reserve casts skepticism on domestic efforts. Libor has been increasingly criticized in the U.S. for being too influenced by the costs of European banks. The Fed prefers plans that reform the way Libor is constructed. Financial Times (free content)
(5/4)
- Credit crunch still plagues economy
The credit squeeze continues to haunt the economy, despite efforts to minimize its impact by the Federal Reserve. No major economic news is expected this week after a flood of headlines last week. The Fed has made some strides in both containing inflation and in efforts to keep the economy growing. MarketWatch
(5/4)
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- Freddie, Fannie likely to report losses again
Fannie Mae and Freddie Mac are expected to report losses for the third straight quarter, analysts surveyed by Bloomberg said. The mortgage-finance companies, which together own or guarantee 40% of the $12 trillion in U.S. home mortgages, are struggling because of record home foreclosures and payment delinquencies. Bloomberg11
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- Partnership will raise stakes in Accor
Colony Capital LLC and Eurazeo plan to increase their stake in Accor SA to 30%. "Colony Capital and Eurazeo's increased stakes demonstrate their confidence in the management team and their strategy, the group's potential for value creation and the strength of its assets," the companies said. Shares of Accor, Europe's biggest hotel operator, rose following the announcement. Bloomberg
(5/5)
- Mortgage woes prompt widespread dividend cuts
The mortgage mess is causing a cut in dividends, with 15 financial companies in Standard & Poor's 500 index decreasing or suspending dividends this year. Those cuts alone amount to $9.96 billion, or about 6% of the government's economic stimulus package. REITs distribute most of their taxable income in dividends to shareholders. Baltimore Sun
(5/4)
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- Fed bumps up Term Auction Facility to $75 billion
Starting today, the Federal Reserve has boosted the amount offered in Term Auction Facility auctions from $50 billion to $75 billion in an effort to ease the credit markets. The central bank said it is also raising the temporary currency swap lines with the European Central Bank and the Swiss National Bank. "In view of the persistent liquidity pressures in some term funding markets, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing an expansion of their liquidity measures," regulators said. Financial Week/Reuters
(5/2)
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