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Legal Commentary

: Economics of Contempt

Worst Sales Pitch Ever

By Anonymous

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A friend sends along what has to be the least attractive description of an investment firm's strategy ever:
We invest in what we believe to be the premier asset-backed securities in the world - U.S. residential mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. We enhance the return on our investment in these securities by using leverage. Similar to a bank, we seek to earn positive net interest income from the difference between the yield on our securities and the cost to finance them.
So let's recap:

U.S. residential mortgage-backed securities? Check.
Leverage? Check.
Similar to banks? Check.

What could posssibly go wrong?

Maybe it's time to update the ol' website. Just a suggestion.

Full post as published by Economics of Contempt on February 05, 2009 (boomark / email).

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