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 (NYSE: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