Lessons of Risk In AAA-Rated ABS

Gregory, Mike
March 2004
Investment Dealers' Digest;3/15/2004, Vol. 70 Issue 11, p38
Trade Publication
Discusses the risks in AAA-rated asset-backed securities market. Collapse of Heilig-Meyers in the late 2000; Conseco Finance's bankruptcy; Principal losses to investment; Comparison between a regular corporate bond and an asset-backed security; Possibility that bankruptcy courts will rule that the seller's assets were never legally sold; Role of the trustees; Result of the servicing fee reorganization. INSET: THE ABS BOMBS.


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