"Did you know that Romney had a serious stake in the CDO-Derivatives game?" [View all]

[ProSense]

Live long, and Foreclose

by jamess

Remember Romney's startling heartless statement (... I know, Which one?)

This one:

Romney rejects foreclosure relief
by Steve Benen, washingtonmonthly -- October 18, 2011

“Don’t try to stop the foreclosure process. Let it run its course and hit the bottom,” Romney said when asked what he would do to jump-start the floundering housing market.

Which is worse -- that one, or his startlingly callous Let Detroit Go Bankrupt screed?

Hmmph! That some contest!

<...>

Did you know that Romney had a serious stake in the CDO-Derivatives game?

(you know those same Toxic Assets that tanked the economy -- during Romney's "unmentionable years.&quot

Island tax havens factor into Romney's business success
by Bob Drogin Los Angeles Times, Staff Writer -- December 17, 2007

<...>
In Bermuda, Romney served as president and sole shareholderf or four years of Sankaty High Yield Asset Investors Ltd. It funneled money into Bain Capital's Sankaty family of hedge funds, which invest in bonds and other debt issued by corporations, as well as bank loans.
<...>
"It's just a mail drop, essentially," said Marc B. Wolpow, who worked with Romney for nine years at Bain Capital and who set up Sankaty Ltd. in October 1997 without ever visiting Bermuda. "There's no one doing any work down there other than lawyers."
<...>

Did you know that Romney's Sankaty operation, at the depth of the housing market crash, tried "like heck" to profit from other people's misfortune -- tried to re-leverage those lemons, by re-issuing even more of those same Collateralized Debt securities ... to "Buy Low" ...

Bain Capital’s debt investment arm, Sankaty Advisors LLC, may buy as much as $949 million of collateralized loan obligations, according to two people familiar with the offer.

Sankaty, which manages $20 billion of debt, offered today to buy 51 pieces of collateralized loan obligations, according to a list obtained by Bloomberg News. CLOs are a type of collateralized debt obligation that pool high-yield, high-risk, or junk loans and slice them into securities of varying risk and return. Alex Stanton, a spokesman for Sankaty, declined to comment.

Boston-based Sankaty is seeking to take advantage of a 90 percent decline in the prices of some pieces of CLOs, even as the debt packaged in them has gained in value. [...]

CLO securities ranked AA, the third-highest level of investment-grade, are priced between 20 cents and 30 cents on the dollar, according to a Citigroup report yesterday. CLO securities ranked A and below are quoted at less than 10 cents, the report said.

- more -

http://www.dailykos.com/story/2012/07/22/1112576/-Live-long-and-Foreclose