The reason there is no value for an ABS, is because it's a 3% loan for 30 years.
Even a Triple A asset 3% for 30 years..
Market price for a Triple A Corporate is 6% for 3 years....
It makes them WORTHLESS. and they can be 100% performing loans.
but I didn't go to Wharton MCC!! I understand how markets work.
The cost of money has gone from 3% to 7%.... and it makes loans at 3% WORTHLESS in the market....
and yet they still have value.
Tuesday, February 10, 2009
Because you are stupid MCC
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