George D. Friedlander Managing Director, Fixed Income Strategist Private Client Investment Strategy 212-816-8721 george
. Beginning to look at the financial world as two feedback loopsFirst feedback loop Bubbles Hunger for yield Collapse of Risk Premia; illusion that risks had truly changed Hyper-aggressive lending/leverage, dismantling of risk models, explosion in derivatives Fragile hedges Huge overrating of CDOs, a key component of the housing bubble Inadequate transparencyIn munis: Dominance by leveraged/hedged buyers, slope scrapes bottom, credit spreads scrape bottom..
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