Archive for May 13th, 2008

How has sub prime lending affected our US Financial Markets?

Tuesday, May 13th, 2008
fiestababy05 asked:

I know there were two major changes to our Prime lending rates. What caused these rates to change???

2007-9-187.75%
2007-10-317.50%

Question posted courtesy of: Courtney

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Posted in mortgages | 2 Comments »

How can a hedge fund levered 4/1 make money in sub-prime loans. Wouldn’t the interest expense negate spread?

Tuesday, May 13th, 2008
aliveandkicking asked:

I don’t understand how a hedge fund can leverage into a position in low yielding asset and make any money. Where are they getting ultra cheap money?

Question posted courtesy of: Jose
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Posted in mortgages | 2 Comments »