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It's Time For Greater Granularity In MBS Pooling, by Scott E. Pardee
An IAM Exclusive
December 14, 2009


It's time to develop more secure investment vehicles from mortgages. Mortgage poolers' models for allocating mortgages into tranches to reflect their relative credit-worthiness have failed miserably. Many individual mortgages proved more risky than expected, mainly in the sub-prime tranches but also in the higher-rated tranches. Also, the... Want to read the complete article?
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