Good to see NZF innovating Emunerate but don't you get the heebie greebies when the same things that essentially caused the GFC seem to be coming back into favour big time .... even reports today that Wachovia are back in the market with RMBSs

The rating agencies got heaps of flack about how they rated these things and things don't seem to have changed much.

The top tiers of the NZF issue are rated AAA. The profile of the underlying mortgages looks impressive with numbers like weighted average LVR of 73% suggesting pretty safe etc .... but then again 42% of them are low documentation loans .... hardly highly rated securities .... but when you bundle them up hey presto the ratings agency give them a AAA rating

Yep and just the circus of a few years ago all these things are insured as well ..... and just maybe there are heaps of other derivates driven from the same pool of mortgages and bonds. No doubt many prepared to take the extra few points of returns

At least NZF as the originator get the money up front so prob OK for them