Al, there are no puts.
Actually, they don't even have to cook the books. The prices of most of the securities they own are interpreted, as they are not actively traded stuff. This is very common in the fixed-income area. Even Treasuries, if they are off the run, have to be priced by somebody other than the market. The bids and offers tend to be goofus. And down from Treasuries, it starts getting much murkier. Then, once you get foreign debt in there, it is all a SWAG.
One reason I hated competing against mortgage funds was that I considered their prices, unless they had the current Ginnie Mae issue, total fiction. They say they are worth one price, but if they had to sell them, they would get nowhere close to that price. I am sure these emerging market items must be priced with a Ouija Board.
MB |
