tickets, how did you learn about MBS structuring? Why is this topic so shrouded in mystery?
“If you get a big enough interest rate you can suck up a lot of losses”. – Are they demanding a risk premium large enough for the exposure they are taking on?
Overall, the bundling sounds really safe for the AAA paper. You’d need more than half to go into foreclosure to have a hit to the principal. That seems unlikely even to a bear like me. So I was wrong about the Delware Investment Fund’s Fixed Income fund being risky.
