Tuesday, February 10, 2009

How Toxic Update

In my initial post on solving the toxic assets problem I focused on the foreclosure rate to estimate losses. But that may not be quite correct. The key statistic is the foreclosure rate on mortgages in the population of mortgages financed by CDO's. This rate may be higher, I need to check on that. The issue is what are the maximum losses in all the mortgages that underlay CDO's.

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