Wednesday, Jan. 9, 2008 To most institutions and individuals, the outlook for subprime mortgages could not look more bleak.
Indeed, with today's news of record default rates, many observers see subprime as an all consuming black hole!
And yet, some people are said to be buying collateralized debt obligations (CDOs) containing subprime mortgages, at very deep discounts, usually undisclosed.
So what glimmer of future profit do they see? Let me offer some thoughts.
I see three dim rays of light that could one day allow some profit to be squeezed from CDOs.
They are: CDO re-packaging, substantially lower interest rates, and government aid. Let's examine each in turn. more....http://moneynews.newsmax.com/money/archives/articles/2008/1/8/173217.cfm
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