>>BTW if I could buy commercial paper with a 20% default rate for 5 cents on the dollar, I’d go all in, it would be the investment of the lifetime

“The discount on a doubtful loan will always need to be greater than a strict measurement of the risk involved. If there is a 10% risk of default, the discount is likely to be a multiple of 10 per cent…If you cannot value an asset, and no-one wants to buy it, it does not have a value. Bear Stearns have come up with the value of two of its hedge funds. One has lost 91 per cent of value in a year; the other has lost 100 per cent. They were invested in repackaged mortgage backed securities.” William Rees-Mogg
for The Daily Reckoning Australia