Patrick Harden

Alesco Agony Reaches a Crisis Point

Smooth, good points. I guess my point was more to illustrate that the TruPS model they are using is pretty much broken at this point. Unfortunately the stock is getting hit hard today as a result of last night's disclosures. I do like AFN management and I do support the Cohens in general (author is long RAS).

Muddled Mortgage REIT Book Value Creates Buying Opportunity

"Consequently, the Kleros CDOs are really nothing more than a public relations problem for AFN."

One small quibble with that -- AFN is relying on the net investment income from the Kleros CDOs to satisfy their 95% gross income test. If the holders of the Kleros CDOs move to liquidate them (as they well could, since all of them have declared an event of default), AFN could fail REIT qualification testing.