Metlife Has $2.3 Bln In Subprime Holdings
Metlife had around $2.3 billion invested in subprime residential mortgage-backed securities at the end of the second quarter, less than 1% of the company’s invested assets, reports Bloomberg News. Ninety-eight percent of those securities received either AAA or AA ratings. “We feel really good about our exposure to the subprime market and don't think it's a big issue,” said William Wheeler, cfo. “Most of it was issued before 2004, back before they came in a little sketchy with what the mortgage originations were doing.” The company also owned $83 million in collateralized debt obligations backed by subprime mortgages, said Steve Kandarian, chief investment officer.