Thursday links look at fixed-income investing
Regulatory Capital Arbitrage: “With hindsight, there was too little capital allocated for mortgages originated between 2005 and 2007. Then again, with hindsight, they had a negative NPV, and should not have been issued by any rational profit maximizing firm.”
U.S. Imagines the Bailout as an Investment Tool: It’s still extremely unclear what kind of retail investors are supposed to want to invest in this stuff. What kind of risk profile fits a potential retail investor?
REO Hack Job: Paul Jackson takes on the NYT. “This isn’t insight; it’s a poorly-executed witch hunt masked as real journalism.”
Google and the Temptations of Being Cash-Rich: Why Google should give up its cash for reasons of self-discipline.