Brad DeLong, on SA Live Debate, doesn't think overpaying for toxic assets is an issue: "You are...

|By:, SA News Editor

Brad DeLong, on SA Live Debate, doesn't think overpaying for toxic assets is an issue: "You are borrowing at the Treasury rate and buying up assets that yield 6% or more even at par. You can absorb a huge niumber of defaults if you are patient enough to wait for 6-3 to accumulate - and you don't have to worry about your funding getting pulled or violating a covenant. It is genuinely hard to overpay in the sense of losing money."