Morgan Stanley auctions New Century mtgs: report
NEW YORK (Reuters) - Morgan Stanley (MS.N) is auctioning $2.48 billion of mortgages from troubled subprime lender New Century Financial Inc. NEWC.PK, the New York Post said on Monday.
The loans represent collateral that New Century gave the investment bank for a $2.5 billion credit line, the newspaper said.
Morgan Stanley did not immediately return a call seeking comment.
Subprime lenders make loans to people with poor credit histories. Many are struggling with rising delinquencies and defaults. At least four large subprime lenders have sought bankruptcy protection since late December.
Two weeks ago, Irvine, California-based New Century stopped making loans, and said it had less than $60 million of cash on hand. Many analysts have said the company appears on the brink of bankruptcy.
At least two other large subprime lenders, Accredited Home Lenders Holding Co. LEND.O and Fremont General Corp. FMT.N this month announced agreements to sell many of their subprime loans at a discount.
