Posted on 03/01/2006 10:27:06 AM PST by ex-Texan
No, it's ok now. I threw in some extra cowbell.
Swaptions are options on swaps. Didn't know that didya? I worked for a major dealer in 1984 when it did the first CMO. The last one I did was in 1994 before I started managing money for individuals. The business has changed since 1994 I'm well aware of that. But one thing hasn't changed, obviously, the business is still full of people who know not that they know not.
ARe you saying that the BOJ will not raise rates?
Again, the term "swaption" would not be used in referrence to as MBS hedge, because the option is intrinsic. If you knew what you were talking about and were trying to impress me, you would have known that.
The first CMO was jointly issued by Solomon Brothers and First Boston in 1983. Who did you report to you at either of these houses, and why did he wait a year before filling you in on this groundbreaking new financial product? Keep in mind that all of these people subsquently left and I probably worked with them in the 90's.
Obviously the BOJ will eventually raise rates. The effect that this will have on our own economy is debatable.
What in God's name are you people reading to make these pronouncements? Your friend is ducking the original question, so I'll put it to you: Do YOU have any idea what a "mortgage derivative" is or how one might present a problem for a GSE?
The last thing I am trying to do is impress you. I'm simply trying to reinforce what a lot of posters and lurkers on this thread must already believe about you.
I know exactly who you worked with. We probably know each other. I worked with at least one of the Solomon CMO creators as late as 1994.
I didn't work for Solomon or FB in 1983. But I did work for a major dealer who did its first CMO that year.
Feel free to change your story if you think that helps. You are a retail financial advisor (formerly known as a "stockbroker"). You know some guys who worked at Solly. I know plenty of guys who think that means they understand the CMO market. If any of them came on to this thread and said that gave them insight into shady deals at FNMA or Freddie, I'd tell them they were full of sh-t too. I'm not big on naming names here, so how about you just give me the intitials of that CMO creator you worked with in 1994? While you're at it, where did I work?
What I said about Fannie and Freddie is true. They have ballooned their balance sheets with derivatives and notional assets that are mammoth. Their accounting leaves a lot to be desired. And no, I don't claim to be an expert on the balance sheet of either NGO. I do claim to read the financial press and the facts there back me up.
If it makes you feel special to debate me by pre-textual statements that I am a stockbroker fine. A little self esteem is always good. I manage money. I spent the first 20 years of my career as an insitutional bond salesman for major NY banks and wirehouses. That included distibution of a lot of CMO's and all of their accompanying derivative securities such as NERD and inverse floaters, agency derivatives, asset backed, corporates, futures, forwards, money markets and governments.
LOL
I've seen these kinds of threads, posted to FR, since I started lurking here in early '97.
LOL!
Actually, I didn't ask you to name names. I asked you for the initials of the the CMO inventor you supposedly worked with in 1994. Then I was glad you didn't give it to me because obviously any back office geek in Brooklyn knows the names of all the big-time traders in his firm. Heck, some of those guys who I did NOT work with are members of my golf club. I've seen them naked. But then, so have the guys who work in the locker room, and I don't think it gave them any insight into Fanniemae.
The point is that successful institutional CMO traders rarely leave to become stockbrokers. That would be like leaving a posting as a CIA operative to become a traffic cop. In the 80's, lot of guys took jobs in back offices hoping to become traders. A small percentage made it. Some are still in those back offices. The rest went back to school, or else they became stockbrokers. Sound familiar?
But even THAT wasn't my point. My point was that you were talking out of your ass when you talked about the agencies, and you still are. So are the papers. You are not privy to any inside information about balance sheets. That is a fantasy you tell yourself to make you feel like you are somehow in the game. The financial reporters do the exact same thing. A person with professional familiarity with CMOs and MBS would never throw the term "derivative" around lightly when describing the business practices of the agencies. "Derivatives" is the boogeyman that know-nothings in the media use to scare joe sixpack. This is consistent with a person who would feel like a rocket scientist describing a standard hedge like he was an innovator. That's why I remain convinced that you are talking out of your ass.
The point is that successful institutional CMO traders rarely leave to become stockbrokers.
My point was that you were talking out of your ass when you talked about the agencies, and you still are.
A person with professional familiarity with CMOs and MBS would never throw the term "derivative" around lightly when describing the business practices of the agencies.
Want to keep on genius? The noose is tightening. Why don't you tell us how you invented the internet and the internal combustion engine.? You would be much more believable?
Actually, I think everyone has seen enough of your pretentious pomposity to know that you are trying to crack the shell of insecurity that encircles you. Good luck. I'd rather debate the issues than give you a stage to berate others. Ta ta. Say hello to your naked golf buddies.
Um, I didn't claim to have invented anything. You did. I just pointed out where you were lying. You worked in a back office, and now you are a retail stockbroker. Your so-called "insight" is delusional. The end.
So are you saying that in addition to inventing CMOs a year after they were actually invented (in the back office of a different firm no less) you are now speaking for everyone? The two outside response that I saw were people laughing at you.
Quick: call your mutual fund wholesaler at PIMCO and see if he has some more product information that sounds vaguely important.
I don't even speak back office. I went to work for myself managing money. I realized I could do a better job than the whizzes on Wall Street. The likes of you makes me realize the wisdom of my decision. Besides, I can take care of people honestly and make some real money. Why do I get the feeling that you sat on some dealer distribution desk at Solly taking your 20 thousand dollar bonus and buying a new car every year?
You seem to think you're Thomas Wolf's "master of the universe". I used to think I was too. I grew out of it.
BTW, I have never been a stockbroker. You seem to think that it is your destiny to call me one. Whatever floats your boat. Again, Ta ta.
The fact that you are from Georgia gave me an idea:
In the 80's and 90's a famous former professional athlete working out of Georgia was consistently among the top 10-15 CMO distributors on the planet. I didn't work with him, but it would have been impossible to be in the market at that time and not be aware of him, due to his earlier noteriaty and the amount of product he moved. Who am I talking about?
There were competitor firms in my building and I didn't know the names of the CMO salesmen. Didn't really care.
As I said, I didn't work with this guy either. If you had been on a mortgage trading floor at the time, you would have known who he was because of what he did before he went into finance. I worked for two different dealers in the 90's and I heard his name over the hoot at both.
My point remains that no one who was familiar with CMOs would be buying into silly GSE conspiracy stories about "derivatives." The world is full of halfwitted stockbrokers who bought fluff pieces pieces by alarmist WSJ reporters who wouldn't know a trading floor from a catwalk.
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