http://www.marktomarketdebate.com/2009/02/04/private-mortgage-backed-securities/ Mon, 07 Feb 2011 22:30:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.marktomarketdebate.com/2009/02/04/private-mortgage-backed-securities/comment-page-1/#comment-17 cuOnTheOtherSide Wed, 18 Feb 2009 07:28:07 +0000 http://www.marktomarketdebate.com/?p=359#comment-17 That is to simplistic... Many of those securities contain high-risk loans. These securities are leveraged 10,20,30 to 1. A 10% decline wipes out your capital. When this happens the selling starts and the value declines even more. That is to simplistic… Many of those securities contain high-risk loans. These securities are leveraged 10,20,30 to 1. A 10% decline wipes out your capital. When this happens the selling starts and the value declines even more.

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