24/7 Wall St.
08-06-2008, 07:00 AM
24/7 Wall St. Daily News
Misery acquaints a man with strange bedfellows.—Shakespeare, “The Tempest” Auction-rate securities were one of the great inventions of modern banking. By taking long-term bonds and putting them together into a stew, the banks made short-term instruments with better yields than cash. The key to the market for such things is that it was liquid, trading regularly from 1985 until early this year. If some auction-rates were not sold in one exchange, they were held by banks and sold at the next. http://feeds.feedburner.com/~f/typepad/RyNm?i=v7bP0K</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=v7bP0K) http://feeds.feedburner.com/~f/typepad/RyNm?i=6JilfK</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=6JilfK) http://feeds.feedburner.com/~f/typepad/RyNm?i=olI3zk</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=olI3zk)
complete story here... (http://www.247wallst.com/2008/08/bankings-next-b.html)
Misery acquaints a man with strange bedfellows.—Shakespeare, “The Tempest” Auction-rate securities were one of the great inventions of modern banking. By taking long-term bonds and putting them together into a stew, the banks made short-term instruments with better yields than cash. The key to the market for such things is that it was liquid, trading regularly from 1985 until early this year. If some auction-rates were not sold in one exchange, they were held by banks and sold at the next. http://feeds.feedburner.com/~f/typepad/RyNm?i=v7bP0K</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=v7bP0K) http://feeds.feedburner.com/~f/typepad/RyNm?i=6JilfK</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=6JilfK) http://feeds.feedburner.com/~f/typepad/RyNm?i=olI3zk</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=olI3zk)
complete story here... (http://www.247wallst.com/2008/08/bankings-next-b.html)