Friday, August 28, 2009

Refried AAA CDO anyone?

Remember me? Wall Street repackages debt for sale

In recent months investment banks have been repackaging old mortgage securities and offering to sell them as new products, a plan that's nearly identical to the complicated investment packages at the heart of the market's collapse.

Posted by mountain goat @ 04:37 PM (1003 views)
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3 thoughts on “Refried AAA CDO anyone?

  • Certainly working for the banks this deregulation isn’t it? Noses in the trough and governments refuse to do a thing about them.

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  • I see a critical flaw in the strategy – investors still don’t know what they are buying and the sellers aren’t sure either.

    Investment plan FAIL.

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  • They are not exactly new. Re-remics were reported on Bloomberg about a year ago (and the article posted on HPC). Bird and Fortune referred to them on the Rory Bremner show months ago.

    Unlike CDSs the buyers should now be caution about what they buy. It sounds like a way of getting some mortgages sold but is unlikely to lead to more sub-prime mortgages. Potential buyers will be more careful for a few years.

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