Hedge fund guru David Einhorn says a lot of people are afraid to offload their mortgage-backed investments for fear of discovering what they're really worth.
Ever hear of a 20/90 bond? According to David Einhorn, head of hedge fund Greenlight Capital, that's a security for which would-be buyers are bidding 20 (that is, $200) and would-be sellers are offering 90 ($900).
Einhorn is talking tongue-in-cheek, of course, but in today's credit markets, he's on the rim of reality. Rafts of investors who own mortgage-backed securities aren't willing to put them up for sale, for fear of finding out what prices truly are.
Einhorn is labeled a value investor, though he's also known as a short seller. In fact, he implicitly suggested in his speech that one of his current short positions is Moody's.
Read the complete article
Ever hear of a 20/90 bond? According to David Einhorn, head of hedge fund Greenlight Capital, that's a security for which would-be buyers are bidding 20 (that is, $200) and would-be sellers are offering 90 ($900).
Einhorn is talking tongue-in-cheek, of course, but in today's credit markets, he's on the rim of reality. Rafts of investors who own mortgage-backed securities aren't willing to put them up for sale, for fear of finding out what prices truly are.
Einhorn is labeled a value investor, though he's also known as a short seller. In fact, he implicitly suggested in his speech that one of his current short positions is Moody's.
Read the complete article
