Roddy is known to be linked to the dark side. Here, he singles out CCRT. FYI SUBPRIME LENDER BET IS $68M LOSER By RODDY BOYD CLICK TO ENLARGEMarch 15, 2007 -- A Wall Street bond trader who made a big bet on a little-known credit card company catering to borrowers with low credit scores is now confronting a major headache. As Wall Street gets whipsawed amid a meltdown in the mortgage industry, John Devaney, who heads United Capital Markets, a well-known bond-trading firm in Miami, has his hands full with a 5.5 million-share bet gone sour on subprime credit card company CompuCredit. Based in Atlanta, shares in CompuCredit have dipped as low as $26 from $39.85 in early January as worries mount over the health of subprime financial companies. After a steady decline for most of this year, CompuCredit's stock rose 92 cents, or 3.5 percent, to close at $27.06 yesterday. According to Bloomberg, the cost basis for Devaney's 10.6 percent stake is $38.57, meaning he's lost around $68 million with the stock's decline. What's worse, the position is not hedged, according to people familiar with the situation. Devaney did not respond to repeated phone calls and e-mails seeking comment. Traders with knowledge of Devaney and United Capital Markets told The Post that the CompuCredit's position is held in United's brokerage account, which allows greater borrowing leverage. However, if the position continues to deteriorate, it faces a margin call. Also, if the money-losing position is held in the broker's account, it would constrain his firm's ability to buy and sell bonds. Regularly earning between $40 million and $50 million from trading bonds considered too risky or exotic for the likes of Wall Street giants such as Merrill Lynch or Goldman Sachs, Devaney has built a lucrative niche serving hedge funds and other investors. The market for lower-rated debt securities that use riskier loans as collateral has turned ugly over the past month. Depending on how things shake out, the CompuCredit stake's fate could cast a cloud on a man who's also known on Wall Street for his lavish lifestyle. Devaney is regularly mentioned in the press for his purchases of mammoth real estate spreads and for hiring big-name acts such as rock band ZZ Top to play at bond market industry conferences. Among Devaney's big-ticket purchases over the years are a Gulfstream jet, several yachts and a helicopter. roddy.boyd@nypost.com
hahahahahahahahahahahaahaahahahahahahahahaahahahahahahaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa. dont you just love the financial markets.
these bullshit type reporters work off tips. Guess who gives them the tips. They will crush this stock, given the chance. Watch the news for "chairman screws sheep" stuff next.