Felix Salmon Tries to Make Sense of the Mortgage-Backed Market
It sounds like he's throwing in the towel:
Finance Blog - Market Movers by Felix Salmon: Trying To Make Sense of the Mortgage-Backed Market - Portfolio.com: All of which leaves me in the "still baffled" camp. I don't understand what's going on in the 07-01 ABX series, I don't know how many fund managers, in reality, are not allowed to hold junk-rated paper, and I still don't have much of a grip on how credit default swaps on mortgage-backed bonds are structured, and what constitutes a credit event under such contracts. I'd also love to get a much clearer bead on who's been buying protection in the CDS market, whether they're making loads of money right now, and what's happening to those profits.
Any recommendations for an expert in such matters who I should talk to?
