Sub-prime loans rear their toxic heads. A small, little-known company from Missouri borrows hundreds of millions of dollars from two of the biggest names in Wall Street finance. The loans are rated subprime. What's more, they carry few of the standard protections seen in ordinary debt, making them particularly risky bets. But investors clamor to buy pieces of the loans, one of which pays annual interest of at least 8.75 percent. Demand is so strong, some buyers have to settle for less than they wanted. A scene from the years leading up to the financial crisis in 2008? No, this was last month. Read the full article: (VIEW LINK)
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Great find Tommo, really interesting read.