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Gold/Mining/Energy : Precious and Base Metal Investing

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To: aknahow who wrote (13207)	6/29/2003 2:53:04 PM
From: russwinter	Read Replies (4) of 39344

<Banks and others making mortgage loans package them up and sell them.> A pretty universal statement. They sell (pass the old maid card) a portion of them, and hold a portion. <Institutional purchasers of mortgage derivatives do so with funds have similar to moderate duration differences.> "Similar" (an agency versus a treasury) in their minds, and also using counterparties (swaps, etc.). This is tough to accomplish even in the daisy chain fantasy world of these institutions. Do you think counterparty risk is negligible in these arrangements? I'd argue anything but. <That is false, it is not the trade de jour."> Huh?? Are you serious? Message 19055395 Oh right, those "safe" black box "insurance" swaps and derivatives again. Let's see what happens when the next bigger version of LTCM hits and someone really needs the offsetting trade. LOL. More reading list: amazon.com BTW, 14% of all home mortgages are now ARMS.

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