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One of the best parts of this story is how crude a model can be and yet yield tremendous value. A dozen metrics on the underlying loans of the security and "mo
by owinebarger 17y ago
One of the best parts of this story is how crude a model can be and yet yield tremendous value. A dozen metrics on the underlying loans of the security and "most ARMs reset in two years" giving 3 years as the window for the market to fully recognize how bad the loans were.
- philk 17y agoThe complicated part is all the crude models that don't do much at all that you have to trudge through to get the few worthwhile models.