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The real kicker in these deals was the provision for the lock in at very low rates in the event of a series of failed auctions. If the rates had been allowed to continue to increase, the borrowers would have had to payoff these bonds and get other financing. The lenders would not have suffered from the crunch.
Aug 10 13:23 pm
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All Comments by Augustus »Auction Rate Securities: Who's To Blame? [View article]