Scary subprime chart

http://www.markit.co...ory_graphs.html

I'm having trouble understanding what the asset really is. Seriously. You've got some priced at 15 cents on the dollar. The problem is that it looks like an index of pools of mortgages (maybe), but they may be something else. Title may be dubious too which makes for a problem with work out, too. Otherwise, I think I'd be pooling some big money and buying those things. I mean, if I'm reading this right, you gotta have 85% of these default in order to lose money? That's a no brainer buy. The only reason they aren't higher is that the street doesn't know what they are. M

These are securities tracking the value of subprime CDOs. These are not your regular mortgages. These are trenched based on cash flow. The highest quality ones are mostly principle so you can recover 70%. But you could lose 100% on the trenches based on cashflow. That is why some are close to zero and they should be zero.