From Barron's 3-19-07 Solid earning reports from Goldman Sachs (GS) and Lehman Brothers (LEH), covering fiscal quarters that ended before late February, also helped soothe frayed nerves and buttress hopes that the subprime fallout remains contained -- for now.

From Barron's 3-19-07 Solid earning reports from Goldman Sachs (GS) and Lehman Brothers (LEH), covering fiscal quarters that ended before late February, also helped soothe frayed nerves and buttress hopes that the subprime fallout remains contained -- for now.

From Barron's 3-19-07 A surprise $9.9 billion bid by the Intercontinental Exchange (ICE) to merge with the Chicago Board of Trade (BOT), which is itself planning to merge with the Chicago Mercantile Exchange (CME), raised the specter of a bidding war and propped up the financial sector.

From Barron's 3-19-07 Bullish call trading in Williams- Sonoma (WSM) -- amid speculation it might put itself up for sale -- reminded traders that fear can't expect to have the stage all to itself.

From Barron's 3-19-07 For one thing, these government-sponsored mortgage-finance companies are less exposed to the credit risk of non-traditional mortgages. As yields rise with tightening credit, their cost of funding may not ratchet up as much given their implicit government backing, allowing them to lock in wider spreads in a challenging credit environment.

From Barron's 3-19-07 For one thing, these government-sponsored mortgage-finance companies are less exposed to the credit risk of non-traditional mortgages. As yields rise with tightening credit, their cost of funding may not ratchet up as much given their implicit government backing, allowing them to lock in wider spreads in a challenging credit environment.

From Barron's 3-19-07 Not all homebuilders will fare equally as lending constricts. Toll Brothers (TOL) and KB Homes (KBH) are highly correlated stocks that have traded in sync 86% of the time over the past year. But Michael Benhamou, Louis Capital's London-based managing partner, sees a possible divergence ahead. For one thing, tightening credit will hit the lower end of the housing spectrum harder, and KB Homes serves a wider swath of first-time home owners. The average price of homes sold by KB is $277,000, compared with $690,000 for Toll, a luxury homebuilder. As lending tightens for new buyers, Benhamou reckons "Toll will outperform KB Homes by 15% over the next three months."