http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating Seriously, this could not be more beta Thu, 18 Mar 2010 12:35:47 -0400 http://wordpress.org/?v=2.8.6 hourly 1 http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12832 Tuna Surprise Thu, 09 Jul 2009 18:18:40 +0000 http://www.theawl.com/?p=7102#comment-12832 Is that a California debt obligation or a actual guffaw? Is that a California debt obligation or a actual guffaw?

]]> http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12829 Choire Thu, 09 Jul 2009 18:02:19 +0000 http://www.theawl.com/?p=7102#comment-12829 L.O.L. L.O.L.

]]> http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12814 kitten_witawip Thu, 09 Jul 2009 17:19:48 +0000 http://www.theawl.com/?p=7102#comment-12814 Yeah but those guys are like serial cheating husbands. "Honey I know I've lied before but I'm a changed man, you have to believe me..." Yeah but those guys are like serial cheating husbands. "Honey I know I've lied before but I'm a changed man, you have to believe me…"

]]> http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12811 Flashman Thu, 09 Jul 2009 17:15:36 +0000 http://www.theawl.com/?p=7102#comment-12811 Ssshhh! If we don't tell anyone, it'll all be ok this time! Ssshhh! If we don't tell anyone, it'll all be ok this time!

]]> http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12804 brent_cox Thu, 09 Jul 2009 17:04:09 +0000 http://www.theawl.com/?p=7102#comment-12804 How long are we supposed to hide in the basement when this happens? How long are we supposed to hide in the basement when this happens?

]]> http://www.theawl.com/2009/07/a-great-new-innovation-in-banking-repackaging-debt-and-upgrading-its-credit-rating#comment-12798 sigerson Thu, 09 Jul 2009 16:48:39 +0000 http://www.theawl.com/?p=7102#comment-12798 Calm down. This is a good idea to create liquidity and produce pricing transparency. A segment of any portfolio has lower default rates than other segments, but because the entire portfolio is frozen and can't be traded, its price is zero. Re-securitizing the cash flows from the portfolio allows investors to buy just the low default segment (AAA rated, for realz) while properly rating the crap. Even the lower rated segments will at least have a market for them, which will create a price other than zero. Calm down. This is a good idea to create liquidity and produce pricing transparency. A segment of any portfolio has lower default rates than other segments, but because the entire portfolio is frozen and can't be traded, its price is zero. Re-securitizing the cash flows from the portfolio allows investors to buy just the low default segment (AAA rated, for realz) while properly rating the crap. Even the lower rated segments will at least have a market for them, which will create a price other than zero.

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