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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: GraceZ who wrote (51411)4/5/2006 3:31:05 AM
From: Amy JRespond to of 306849
 
RE: "The bank doesn't get shafted, the person who bought the CMO does."

i.e. insurance product investments and money markets?



To: GraceZ who wrote (51411)4/5/2006 2:28:57 PM
From: deenoRead Replies (1) | Respond to of 306849
 
depends on who issued the CMO, whether it was overcollateralized or not, etc.... So it may be the packager that takes the loss by either making it good or taking a discount on the orginal package.