Umm….are you suggesting there IS a market for the Mortgage Backed Securities, Commercial Securities, Consumer Credit Securities, etc?
I heard somewhere the market froze up and they were selling for $0.05 on the dollar and there was some historic emergency and something about bailouts and printing presses.
Iceland would love to hear from you if you have some buyers lined up.
You my friend are now quoted as stating:
“Debt can no longer be sold as an asset”? “That’s patently absurd.”” [/quote]
There’s a market for all types of debt… at a price. If I buy some MBS for 10 cents on the dollar, or 60 cents on the dollar, or whatever… that’s going to be an asset to me. Simple as that.
I just bought a senior convertible security with a 9% coupon in a company the other day for my partnership. That’s debt. It’s an asset for my partnership.
Again, one entity’s debt is another entity’s asset. What value that asset might have is a separate issue. But debt is trading every day. Boatloads of it. Check the tape. Some of it with liquidity provided by Uncle Sam – but that’s completely beside the point where your original assertion is concerned, despite your effort to change the subject. There is a rather large difference between saying that, “The terms on debt are materially worse today than they were three years go and a lot of debt trades at significant discounts to par value,” and saying, “Debt can no longer be sold as an asset.” Exactly what part of this do you not understand?
