![]() ![]() Bonds would be divided into equal sections, called tranches, and organized in terms of quality. Mortgage bonds weren't considered good investments for a long time, but some dudes at Salomon Brothers cooked up a plan.Makes sense, right? Um, we're not so sure. Basically, owning a mortgage bond entitles the holder to receive all of the payments on those mortgages.These things are pretty simple at first glance: they consist of a bunch of regular people's mortgages bundled together and sold as a package. ![]() Before we continue, we need to discuss the concept of the "mortgage bond," which was only invented about ten years before Eisman joined the industry (1.15).A lot of bigwigs despise Eisman for his no-nonsense attitude, but an equal number of people love him for it, especially because he tends to stand up for the underdog (again: rare, especially on Wall Street). ![]()
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