A very vivid representation of securitization for the Obama generation. When you see 4 different tranches, at spreads between +50 and +425, and all rated Aaa/AAA/AAA, (not to mention all using 12x taxpayer money as leverage) it would be simply criminal if you do not invest all your client's money in any/all of these completely risk free classes.
Oh, and just in case you are desperate seeking a broker with whom to place your all in TALF order, look no further than Citi. After all...
Citi (C) is uniquely qualified to arrange TALF loans due to its relationships with the Fed, the rating agencies, and TALF investors
– Pricing and proceeds will be driven by underwriting, rating agency process and investors
– Proper underwriting is essential to execution since Fed has discretion to refuse securities [We can't wait to see the Fed refusing some pristine AAA-rated POS]
– Longstanding relationships at rating agencies and intimate knowledge of their models [just in case anyone thought there were no models at all]
– Access to broad array of 100+ TALF investors, critical to driving tightest terms and resulting in best TALF execution track record to date [Alas Citi's rolodex excludes CMBS investors, resulting in exactly 0 interest in yesterday's CMBS TALF auction]
Hat Tip ValueatRisk