A mortgage is a contract between a lender and borrower backed by an asset, the home. It is a loan against value A credit derivative is a contract between the lender and another entity, to cover the possibly that the mortgage borrower will default. It is insurance against risk.
On Wed, Oct 1, 2008 at 10:33 AM, Gruss Gott <[EMAIL PROTECTED]> wrote: >> Mo wrote: >> Credit derivatives are in the 50 Trillion range, not bad mortgages. >> > > Nobody understands that distinction. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:271774 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
