Tue Nov 20, 2007 1:57pm ET
(Updates stock price, adds background, details)
NEW YORK, Nov 20 (Reuters) - Shares of Countrywide Financial Corp (CFC.N: Quote, Profile , Research) plummeted as much as 22 percent on Tuesday to their lowest level in more than seven years following an analyst downgrade and amid growing investor jitters over credit losses stemming from the U.S. housing slump.
The shares were down $1.43, or 13.5 percent, to $9.14 in afternoon trading after falling as low as $8.21 earlier in the session -- less than half the $18 conversion price for the $2 billion of Countrywide preferred stock that Bank of America Corp (BAC.N: Quote, Profile , Research) bought in August.
Credit default swaps on Countrywide Home Loans Inc rose about 160 basis points to 900 basis points, or $900,000 per year for five years to insure $10 million of debt, an analyst said.
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