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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (3288)	9/26/1998 11:30:00 AM
From: Gary105	Read Replies (1) \| Respond to of 18998

Mr. Pink, more clarification on FP specifically the following questions: 1. Re. securitization their filings indicate that they use a credit rating system developed by Fair Isaacs who have an excellent reputation. Their securitizations are not monolithic, but rather have a range of credit ratings (ie its a portfolio of loans) with only a small portion of loans having a poor rating. What makes you think that this scenario will not continue? You give the impression that the situation will suddenly go from acceptable to impossible. Comments welcome. 2. Re interest only strips, can you explain what they are, how they work and why you think they are dangerous and your estimate of how much FP will ultimately have to write off? Can you give examples of companies that already have had problems with I/O strips. Thanks, Gary