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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: YanivBA who wrote (69174)8/31/2006 11:06:12 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
I think you are mixing short term paper with a longer term paper.>

You can use the two or five Treasury/BAAspread also, which is about 25 basis point more. But still I'd have to ask (applying some intuitive thinking) which is riskier, a one year Treasury or a five year? Kind of illustrates another level of maturity risk taking going on, that on top of credit spreads, don't you think?



To: YanivBA who wrote (69174)8/31/2006 11:56:20 AM
From: Ramsey Su  Respond to of 110194
 
biz.yahoo.com

here is another one of these deals that in essence, the issuer is retaining 2.36% of the riskiest tranches.

NovaStar retained the M-7, M-10, M-11 and M-12 certificates. Collectively, these certificates represent $23.6 million in principal. The M-10, M-11 and M-12 certificates were not covered by the prospectus. Ratings for the M-7, M-10, M-11 and M-12 certificates follow: