Bond Outlook [by bridport & cie, April 25th 2007]
Our bias against structured and securitised bond products is based on their two major lacunae: liquidity and transparency. Both are hurting bond investors seduced by the extra yield offered by mortgage-backed bonds in the USA, especially those “supported” by sub-prime lending. The more sophisticated buyers have been boasting that they have taken only the AAA portion of the CDOs, but someone must have been buying the low-credit portion! |
|
At last some estimates of the size of the problem have been published, thanks to Pacific Investment Management Co. |
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
