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IndyMac: Subprime Contagion Fears ‘Overblown’ 

In a statement to the media released late yesterday, IndyMac highlighted key performance metrics associated with its considerable Alt-A portfolio in an all-out effort to counter market perceptions that problems in the subprime market might be spreading into Alt-A credit. “I’ve read it in the press that Alt-A lending is ‘in between’ prime and subprime lending,” said IndyMac CEO Michael Perry. “Well, that’s true but not very accurate given the facts. “Let me give you a simple, visual geographic analogy. That’s like saying that our headquarters in Pasadena is ‘in between’ Los Angeles and Las Vegas. True enough, but there’s the question of degree: Pasadena is 11 miles northeast of Los Angeles and Las Vegas is 262 miles northeast of Pasadena.”