Mortgage securities: They aren't all lemons

Posted by: Peter Coy on May 29

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Investors in mortgage securities swung from irrational exuberance to equally irrational pessism. Not long ago, they seemed to have concluded that just about every house in America was going to be foreclosed on. Now some rationality is returning. People are realizing that there is some real value in some of the private-label residential mortgage-backed securities that were issued during the go-go years, 2004-2007. Notice I said “some,” not all. There are plenty of losses left to be felt in the housing market. I wrote about investors’ efforts to pick out the sweet fruit from the lemons in a news story. Let me know what you think.

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BusinessWeek’s Joe Weber, Patricia O'Connell, Michelle Conlin, Frederik Balfour, Peter Coy, Greg Spielberg and Roger Crockett examine The Case for Optimism by looking past the financial turmoil and economic unrest gripping the globe to focus on the promising future that lies on the other side of this storm. We’ll chronicle the forward thinkers investing in R&D, launching promising new products, entering new markets, or implementing management and leadership.

See why BusinessWeek Editor-In-Chief Stephen J. Adler is optimistic about the economy amid the sharpest downturn since the Great Depression.

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