Best vehicle to buy sub-prime junk?

Discussion in 'Trading' started by Cutten, Jul 30, 2008.

  1. With Merrill selling a bunch of mortgage-backed assets for 22 cents on the dollar, there could be some interesting opportunities over the coming months in this sector. Anyone know some good trading vehicles that correlate with (or ideally *are*) mortgage-backed securities?
  2. you can buy mbs's outright but it requires deep pockets. i looked into it a few years ago, and from my recollection it required 7- or 8-figure minimum. it's not a retail product.
  3. WaMu
  4. The best direct answer to your exact question, "best vehicle to buy sub-prime junk?" is...................


  5. SUBPRIME PROPERTY LIQUIDATIONS that are cashflow positive!!!!! Much better than ABX tranches because there is tangible value, not derivative value.