Sentences with phrase «underlying asset pools»

The only problem is that interest rates are so low now the risk embedded in the underlying asset pools are much greater than the interest rate compensating the investor for buying these securities.

The uncertainty about the risk assessment of mezzanine tranches means that any calculation of the prudent regulatory bank capital held for these tranches should be significantly higher than that for the underlying asset pool.

Not exact matches

The vast bulk of the assets underlying these securities are residential mortgages (other assets, such as commercial property mortgages and car loans, constitute only about 2 per cent of the pools).

This is off - topic now, but I guess Chase is doing what Congress was too stupid to think of doing when passing the $ 700 billion bailout that the Bush administration said was needed desperately and immediately — get better valuation of the toxic derivative securities (which these credit card receivables are in too) by getting as much of the underlying assets paid off and out of the pool as possible.

Remember that the «toxic assets» held by banks represent pools of mortgages that have been cut up into dozens of individual pieces; the higher grade pieces having first claim to payments made on the underlying mortgages, and the lower grade pieces having claims to less likely payments.