Reply #24: Carlyle wins again

[RobNYNY]

I'm involved in this industry. While I don't understand from the press reports exactly how this deal was structured, what it probably means is this:

Last summer, Carlyle had a pool of mortgages, and it wanted to get rid of the risk and in effect sell them for cash. It put together this deal, and transferred the risk of default on the mortgages to the investors in the fund. Carlyle comes out with $300 million in cash, and the investors are now watching the pool go to hell. If anything, the owners of Carlyle are congratulating themselves on shifting the risk with such brillian timing.