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

To: Travis_Bickle who wrote (149397)	9/23/2008 1:40:17 PM
From: GraceZ	Respond to of 306849

If they are contemplating loans that have been sliced and diced it is very possible they will be buying assets with no value whatsoever. This is the risk. Some of these securities are simply securities that capture future cashflow from pre-payments of principle or interest strips, they have nothing else of value behind them. Give widespread foreclosure amnesty to borrowers and there goes any and all cashflow. I doubt there are many "whole" loans left that they want to sell. Basically in an illiquid non-functioning market you sell what you can sell first, the good stuff, leaving you holding the sludge.