Pimco's Stracke Says Some Complicated Debt Echoes Subprime MBS
Pimco president Stracke warns that certain complex debt instruments, particularly collateralized fund obligations (CFOs), share concerning similarities with the subprime mortgage-backed securities that preceded the financial crisis. Investors in these products are not being adequately compensated for the risks they are taking on, according to Stracke's assessment. This caution highlights growing concerns about whether the market is properly pricing risk in increasingly complicated financial products.
1 Article
Trace's outlet lean is shown first — tap Left / Center / Right on each source to add your rating too.
- BloombergTrace: Center
Pimco’s Stracke Says Some Complicated Debt Echoes Subprime MBS
Pimco president Stracke warns that certain complex debt instruments, particularly collateralized fund obligations (CFOs), share concerning similarities with the subprime mortgage-backed securities that preceded the financial crisis. Investors in these products are not being adequately compensated for the risks they are taking on, according to Stracke's assessment. This caution highlights growing concerns about whether the market is properly pricing risk in increasingly complicated financial products.
Rate outletRead original
Readers say
How does this story lean?
Outlet ratings above are Trace's curated source map. Vote here (same as on the home feed) — one vote per browser, changeable anytime. Rate individual outlets in the coverage list below.
Comments
0No comments yet. Say what you noticed in the coverage.