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The leverage is a magnitude or two greater than possible defaults covered by Fannie and Freddie. At least when you talk about home mortgages, you still have a
by jhancock 18y ago
The leverage is a magnitude or two greater than possible defaults covered by Fannie and Freddie. At least when you talk about home mortgages, you still have a tangible asset behind it. The many layer of leverage on top of this provided phantom value and is where most of the horror is in the big numbers.