News for hackers. Stuff that matters.

A comment on Banks are getting back into the business of building mortgage bonds. Parent comment

Re:Banks are getting back into the business of building mort... by xchaotic on Monday September 16, 2019 @11:28AM (#20985018)
well if they paid more, it could take out any profitability from a product where real returns after fees are already very low
[ Parent | on HN ]
Re:Banks are getting back into the business of building mort... by cm2187 on Monday September 16, 2019 @11:30AM (#20985037)
Agree. Which is why the issuer is currently paying for it. But with the obvious potential conflict of interest.

Plus these are securities, and all market participants should have access to the same public information. It is a problem to have half the investors in the dark about the transaction if they couldn't pay for a private rating (which in turn would negatively affect pricing).

[ Parent | on HN ]