Wednesday, January 30, 2008

Jan 30, 2008

Yld curve is beginning to steepen which is a good thing. Risk becomes to be priced better.

S&P downgrades mortgage debt which overrides the Fed Cut of 50bps. S&P takes neg watch on $240 billion representing about 35% of the world's CDO market. Market ended lower.

Level 3 assets - very interesting place for the banks to become less transparent. It will be a place to hide for a while.

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