Texas Proud
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 16, 2005
- Messages
- 17,266
Yeah - but how did all of this get to money market funds owning some of this CDO stuff? How did it have a AAA rating considered "safe" for MM funds?
I didn't think S&P & Moody's had actually rated this stuff, but rather packaged it. So who rated it?
I know some (smart) MM funds completely avoided this stuff.
Above and beyond the hedge funds, etc., owning this stuff which does not surprise me, and some bond funds owning this stuff which is not that surprising, I am fairly flabbergasted by it showing up in MM funds.
Audrey
I don't know if you got an answer... have not read the whole thread... BUT
I was a trustee for some leveraged packages such as CDOs... how they get a AAA rating is they are SO HIGH on the pecking order for payment that the whole portfolio would have to go crap before they did not get paid...
Let's say you have $1 billion in loans... if someone offered you $200 mill of this and that you would be paid first... would you think it was AAA?? I mean, you got $800 mill that has to go bad before they even touch your first $ loss...