Funny coincidence with name, I used to work at DLJ in a former lifetime, secondary mortgage market, MBS desk, whole loan analyst. Good job, interesting work for a while. Loved the math, yield curve, loan characteristics, pricing mechanics. RTC cleanup was mild compared to the ‘junk’ out there today.
I think you’re exactly correct, BTW. Both in your read of the situation, and predicting the outcome. Superfund will help to shore up cash flow deficiencies, defer re-marking the securities. But at the end of the day, it’s an awful lot of bad paper.
