Subprime Prescience at MetLife

WSJ's Lavonne Kuykendall quotes Steven Kandarian, MetLife's (MET) CIO:

Mr. Kandarian said MetLife identified the risk from subprime loans early and stopped buying subprime mortgage-backed securities rated single-A and below in late 2004.

Note that MetLife's fund managers aren't the kind of people who get huge bonuses for outperforming by a few basis points in a quarter, or who get fired if they don't. They're real-money, long-term investors who buy and hold securities they've looked closely at and believe in. Here endeth the lesson.