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You mean like how Goldman sold junk bonds to customers while knowing it was junk?
by wanderingmind 4y ago
You mean like how Goldman sold junk bonds to customers while knowing it was junk?
- deleted 4y ago[deleted]
- strangeattractr 4y agoJunk bonds are bonds with high credit risk, what’s wrong with selling them to customers who are after high yields?
- yarky 4y agoIt's not like junk was a part of the name right?
- bilvar 4y agoDidn't they get credit agencies to rank them as premium and not junk though? I think that we know they were junk after the fact.
- mlrtime 4y agoJunk bonds are just High Yield bonds at a certain rating. GS doesn't set the Price/Yield or the rating.
- species9606 4y agoYou have a point, but you may be thinking of the CDOs they and other sold, knowing that they were full of risky mortgages but laundering them through overly-chummy ratings firms.
- lmm 4y agoThey only sell those to accredited investors - indeed, the counterparty in the famous lawsuit was a German bank who'd bragged about how they were smart traders playing with the big boys.