The rest of his taxable holdings run the gamut of corporate, municipal, asset-backed and mortgage-backed bonds.
Greene became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
FORBES: Jeff Greene Is Now Proud Owner of 55-Acre Hamptons Estate
This in turn has caused a rise in the value of government-backed bonds and bills.
BBC: China says most of its reserves are in US Treasury Bonds
Michael Burry combed through the prospectuses of mortgage-backed bonds and concluded that lending standards were sagging.
ECONOMIST: A handful of outsiders come out of the crisis in credit
He later became a billionaire by buying credit default swaps on subprime mortgage-backed bonds as housing crashed.
Banks on both sides of the Atlantic are issuing lots of government-backed bonds, which should encourage lending.
The way to get better yields is to buy mortgage-backed bonds, which are shares in mortgage pools.
If Pulte ever wanted to build middle-class houses, Su Casita would have to issue mortgage-backed bonds, as U.S. lenders do.
CDOs offer higher yields than similarly rated mortgage-backed bonds, but are more susceptible to losses if the underlying loans decay.
One potential response would be for the Fed to purchase even more mortgage-backed bonds in an effort to reverse yields.
WSJ: HEARD ON THE STREET: Economic Uplift May Be Drag on Housing
Tax on interest from Treasuries, corporates, various asset backed bonds and so on is charged: but not on most munis.
FORBES: What Is This Nonsense That Warren Buffett Is Spouting About Taxes On Investment?
The big banks that wrote off huge losses on their housing-backed bonds in 2007 will be acting real stingy in 2008.
The most obvious problem has been the jump in subprime mortgage defaults and the ensuing collapse in values of mortgage-backed bonds.
Veer off this mainstream market into the land of private-label and commercial-mortgage-backed bonds and you can get some really sexy yields.
They priced portfolios of mortgage-backed bonds, corporate loans and securities backed by commercial real estate, and provided more liquidity to debt markets.
The program will lend taxpayer money to a select group of money managers to buy the mortgage-backed bonds from weakened financial firms.
Fortunately, Mexico has instituted a pension plan, financed with a 5% tax on wages, that will invest in private instruments, including mortgage-backed bonds.
There he stayed for two decades, avoiding politics and demonstrating a mastery of the computer models needed to manage large portfolios of mortgage-backed bonds.
Bond mutual funds that invest in mortgage-backed bonds prefer investment grades.
The second is that the Treasury should simply guarantee mortgage-backed bonds.
Same with the famous sub-prime mortgage backed bonds, the CDOs that packaged those bonds into dangerous slices of investment that lost probably hundreds of billions.
The interest tab will climb to 2.6% of GDP from 2% in 2007, held down only by the Federal Reserve's voracious purchases of Treasurys and mortgage- backed bonds.
The first is that the Bank of England should extend its special liquidity scheme and lend banks directly whatever they need, accepting more mortgages, or mortgage-backed bonds, as collateral.
Charlie Ledley and Jamie Mai, two investors with a penchant for finding mispriced options, reckoned that credit-default swaps on mortgage-backed bonds were just too cheap a trade to pass up.
ECONOMIST: A handful of outsiders come out of the crisis in credit
Now that the rating agencies are downgrading CDOs as well as the underlying mortgage-backed bonds that they reference, it seems all but certain that banks and others will be forced into another round of markdowns.
Some employees of the New York company told each other how unfair it seems to them that Goldman is being singled out for betting against the housing market in 2007 as it was pitching mortgage-backed bonds to certain clients.
As I outline in an article in a recent issue of Forbes Magazine, holders of many states tobacco-backed bonds are worried about whether there will be enough cash on hand from the settlement to pay them out in full.
Only the Stanley Tucci character, the risk officer who is coldly brutally fired BEFORE the slaughter refuses to come back for one day to oversee the ruthless liquidation of the highly leveraged mortgage backed bonds about to doom Wall Street.
In the domain of derivative contracts like credit default swaps or auction-rate preferreds (which even George Soros didn't know existed) or complex collateralized debt obligations of mortgage-backed bonds, there was a "failure to know what isn't known, " and the ramifications for not knowing were huge.
That expands the list of eligible collateral which banks can post from securitized debt (those asset-backed bonds accepted since Dec. 2007 on top of government gilts), just so long as the loans are residential or commercial real-estate mortgages, consumer loans (but not including credit cards), or corporate loans to non-bank borrowers.
应用推荐