“The asset (note and mortgage) is sold to someone else. They may pay 50 cents on the dollar, but you still owe the full amount. That’s how the FDIC fund is not totally ravaged. Then if you don’t pay them, they foreclose.”
I’m not talking about what bankers actually do, I’m talking about real contract law, [...]
Collateral damage
Oct 9th 2008
From The Economist print edition
HEDGE funds are supposed to hedge. This year, they haven’t. The fund-weighted composite index compiled by Hedge Fund Research, a firm that tracks the industry, fell by 4.7% in September, the second-worst month on record. Since the start of the year it has lost 9.4%. The industry’s promises [...]
NEW YORK (Dow Jones)–”OK Computer”: It’s the name of a notable 1997 Radiohead
album, and would also be an apt title for quantitative hedge funds’ performance
since their near-collapse last August.
While quants are outperforming the overall stock market year to date, their
returns are in the red. Still, compared to early last August, when margin calls
forced many big-name [...]
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