Are pensions and hedge funds prohibited from creating MBS themselves? wouldn't it be cheaper and less risky to bypass the investment banks as the middle men?
Here is the catch. the rating company could be involved in the CDO's like moody. they give it higher rating then it should. that way it allows the pension fund manager to invest in this unregulated S.P.E.
I think thats why fanny and freddie have 3 trillion in real estate foreclosures still unsold on there books. they would collapse the market to its true level if they put them up for sale. so its allowing the senior to get paid first then it goes up for auction.
right but how can they pay the higher yields in the CDO's? Some might just necessarily not get paid out I guess?
hottenma 7 months ago
Are pensions and hedge funds prohibited from creating MBS themselves? wouldn't it be cheaper and less risky to bypass the investment banks as the middle men?
FeelGoodinc91 7 months ago
SAL please do a Video on the Glass-Stegal act... so people can at least understand it.. because America is lost.
freeadplanet 7 months ago
man do videos on USABO.....
420hassam 7 months ago
haha ratings agencies "look under the hood" for you. retarded -.-
anarchris 7 months ago
Here is the catch. the rating company could be involved in the CDO's like moody. they give it higher rating then it should. that way it allows the pension fund manager to invest in this unregulated S.P.E.
I think thats why fanny and freddie have 3 trillion in real estate foreclosures still unsold on there books. they would collapse the market to its true level if they put them up for sale. so its allowing the senior to get paid first then it goes up for auction.
WizzRacing 7 months ago
first!
ForToday03 7 months ago