I saw that the article mentioned sub-prime loans, but would really risky loans like negative amortization loans be securitized? If so, maybe the foreign investors would do better to buy the Rockefeller Center.
On Sat, Aug 27, 2005 at 12:54:40AM -0400, Doug Henwood wrote: > Michael Perelman wrote: > > >Who bears the risk on the new-fangled real estate loans? Are they > >securitized like > >traditional loans? > > Yeah it's mostly securitized. The WSJ had a piece the other day about > how foreigners were buying the stuff up lustily. They quoted a > Chinese portfolio manager who couldn't get enough of them. But our > own pension funds & mutual funds are big buyers too. > > Doug -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
