Mukul Pareek

Seeking Alpha in Indian Real Estate

Most originators of mortgages are flush with funds and are happy to hold the mortgages and earn a return instead of securitizing and getting it off their books. Even if they were to do that and do more originations with the money raised, that would only push up the prices of existing real estate. I don't know of anywhere where CDOs are used to "low cost housing for the millions"? There are poor people in the US too - the most developed market for collaterized securities - but have you seen CDOs being used to "low cost housing for the millions "?

Clarifying the Information Ratio and Sharpe Ratio

Thank you for taking the time to read and respond to my post. If you are reading this article as investment advice, well then I am a bit speechless at your criticism. I have only tried to explain what these ratios are, and what they are expected to measure, that is all. If you believe in the distinction between alpha and beta, than I would assume you believe in the CAPM, and you could challenge that too on the same grounds. Since the CAPM, EMH, MPT etc with all their faults are the basis of how the investment world frames discussions, I see little need to state the obvious (eg, that no one knows the future, the assumption of alpha or beta being normally distributed is a very strong assumption, you need to look on both sides before you cross the road, I could go on, but this isn't the subject of the post).