tag:blogger.com,1999:blog-22517597.post108677569485381287..comments2024-03-03T11:13:39.377+11:00Comments on Moomin Valley: Hold to Maturity ValuemOOmhttp://www.blogger.com/profile/03440274434662150925noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-22517597.post-12612533112246407312008-09-30T11:25:00.000+10:002008-09-30T11:25:00.000+10:00The problem is that the "hold to maturity" value d...The problem is that the "hold to maturity" value depends very heavily on house prices. Different assumptions about future house price declines lead to different values, because it is well established that declines in prices, defaults and losses are closely linked. So a little wishful thinking would lead to massive overpayment, which is of course what Hank and Ben intended. There is no shortage of liquidity for the toxic waste. It is just that the owners can't stand those bid prices.<BR/><BR/>That's a different situation than the closed end funds, which the fund can choose to correct anytime by buying in shares.Anonymousnoreply@blogger.com