Google announced they are buying car loan securitized debt as they try to improve miniscule cash yields. OK not that impressed with non technology initiatives. But while we are calling the kettle black what this means is the traditional investors in securitized debt are no-show.
Are they too busy with complex derivatives that could explode any minute?
Are they too illiquid and could not take part? (Call Bernanke to verify)
Are they savvy enough to take a pass because they have had a snootful of securitized problems and just do not want to see anymore? Was there a back channel phone call to Fed before the deal?
Anyway Google is now a new candidate for XLF the financial index.
George Gutowski writes from a caveat emptor perspective.
- Warren Buffett says JP Morgan Doing Right Things Why Did He Need To Say That?? $JPM $BAC $WFC (financialskeptic.wordpress.com)
- All the Kings Horses and All the Kings Men Put JP Morgan Together Again $JPM #XLF (financialskeptic.wordpress.com)