Here we go again Saw this article in Bloomberg about Morgan Stanley turning crap CDO's into AAA rated investments for the short attention spanned 'players" in banking and insurance industry.
From the article:
Morgan Stanley Plans to Turn Downgraded Loan CDO Into AAA Bonds - Bloomberg.com
From the article:
Code:
‘Make Magic’
The strategy is increasingly being used for commercial mortgage debt.
Standard & Poor’s said on June 26 that it may lower the rankings on
$235.2 billion of bonds backed by loans on properties such as office
buildings and shopping malls. Banks have issued about $2 billion of
the debt in the last three weeks, according to Barclays Capital. That
compares with $5.8 billion of similar offerings in all of 2008, Credit
Suisse Group data show.
“Somebody does something and it seems to make magic, and the
other guy says ‘Hey, let’s do that, too,’” Raynes said.