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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 393.24+1.1%Dec 11 4:00 PM EST
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To: carranza2 who wrote (26070)12/6/2007 2:43:12 AM
From: oldirtybastard  Read Replies (2) of 218464
 
What about all the assumptions made by the buyers and sellers of collateralized bundled debt that the rates would re-set to a higher one a year or two after the sale? They bought these toxic instruments on that kind of income assumption, which no longer holds. Instead of 6-7%, they go back to teaser rates for a long time.

if fed funds rate gets dropped to zero or thereabouts it would make even the lower return seem ok for them i think
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