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The Derivatives Parabola


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NCT and FIG mulling a deal to buy huge chunks of subprime mortgages.

 

"Constrained liquidity and the re-pricing of credit risk in the subprime mortgage market have created a unique opportunity for us to purchase a portfolio of loans at an attractive price," Kenneth Riis, Newcastle's chief executive, said in a statement.

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Pessimism was rampant for weeks before we had our 500 point down day. There is so much nth degree contrarian stuff circulating, it gets lost in the wash. If you look at money action, as opposed to mouth action, every dip is being solidly bought, while the indices can't even give back a 50% retrace.

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