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Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.
Please click to enlarge the above chart.
It is from a presentation on the infamous ABACUS-2007-AC1 CDO product that is at the center of the lawsuit over Goldman Sachs. (full slide presentation available at Naked Capitalism.
Note the agency rating on the investments: Baa2. We know that even A-rates instruments were junk. Who would buy such stuff anyway?
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