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Wow this is a fun fact, and you seem to have a lot of knowledge in this space! Where could I learn more about this?
by pinkmuffinere 1y ago
Wow this is a fun fact, and you seem to have a lot of knowledge in this space! Where could I learn more about this?
- JumpCrisscross 1y agohttps://papers.ssrn.com/sol3/papers.cfm?abstract_id=3159552 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3159552 It was honestly a shocking finding at the time. But loss ratios (2.3%) were just within historic norms for what someone buying something rated AAA would expect [1], and to my knowledge, the losses presented as restructurings not outright defaults as is commonly imagined in popular retelling of the financial crisis. [1] https://www.federalreserve.gov/publications/april-2021-dodd-frank-act-supervisory-stress-test-methodology-modeled-loss-rates.htm https://www.federalreserve.gov/publications/april-2021-dodd-...
- pinkmuffinere 1y agoWow this is truly amazing. Unfortunately I suspect this will never become common knowledge, the conventional narrative just "feels" so correct. Thanks for the link!