Securities tied to the riskiest mortgages are virtually “bullet-proof,” because even if the U.S. housing market declines by 10 percent, investors won’t take a principal hit on their bonds. The assets offer a “very safe place” to make double-digit returns.
“We have more than half our money in subprime bonds,” Bass said. “You don’t like a pair of jeans at 200 bucks, but when they go on sale for $25 you look great in them.”
“We have more than half our money in subprime bonds,” Bass said. “You don’t like a pair of jeans at 200 bucks, but when they go on sale for $25 you look great in them.”
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