A Daring Trade Has Wall Street Seething

http://online.wsj.com/article/SB124468148614104619.html

Great article from the WSJ.

Great trade by Amherst, sell protection on RMBS CDS, and have the servicer payoff the remaining loans, thus keeping the deal from defaulting and pocketing the premiums. Funny that the banks always complain about this stuff when they are the ones losing, but would take that trade in a second if they saw it. Traders use to bitch if Buy-Side ever made a market on CDS contracts, only because they got “used” Comon guys, this is the game, you’re just mad you got beat.

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