March 15, 2007 / 2:57 PM / 10 years ago

Bear Stearns sees big sales of mortgage assets

1 Min Read

NEW YORK, March 15 (Reuters) - Bear Stearns Cos. Inc. BSC.N said on Thursday it expects to see large bulk sales of troubled mortgages over the next several months, providing an opportunity for the investment bank to make money from the turmoil.

"The pipelines are built up," Bear Stearns Chief Financial Officer Sam Molinaro said on a conference call. "(There are) a lot of assets looking for bids. ... "It's not unreasonable (to think) we'll see quite a bit of activity in the second and third quarters."

Bear Stearns, the No. 1 U.S. underwriter of mortgage-backed securities, also said it expects U.S. mortgage origination capacity to decline significantly. Molinaro said U.S. originations of the riskiest loans could fall as much as 30 percent.

"Dislocation (in the subprime market) is an opportunity for us," Molinaro said.

For further information on the subprime crisis, see [ID:nN14246848].

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