Banks ramping up AAA CDO sales again...

Discussion in 'Wall St. News' started by PragmaticIdeals, Jul 8, 2009.


    "Two years after the credit markets began to seize up, costing the world’s biggest financial institutions $1.47 trillion in writedowns and losses, banks are again taking so- called structured finance securities and turning them into new debt investments with top credit ratings. While the Morgan Stanley deal is the first to involve CDOs of loans, banks have being doing the same with commercial mortgage-backed securities in recent weeks. "

    "Banks have issued about $2 billion of the debt in the last three weeks, according to Barclays Capital. That compares with $5.8 billion of similar offerings in all of 2008, Credit Suisse Group data show."

    "“Somebody does something and it seems to make magic, and the other guy says ‘Hey, let’s do that, too,’” Raynes said. "


    Here we go again, folks...
  2. They're AAA-rated because we say they are. :cool:
  3. fhl


    If the gov't elite hope/ask/demand that banks make loans, that fnm and fre loosen lending standards, and that the housing market "get back on its feet", then what do you think is going to happen to the loans that result?
  4. They'll be very few, far between and "safer". Safer because banks will demand a 20% to 50% downpayment in order to get the loan. :cool: