Tuesday, March 10, 2009

Mark to Market, Mark the Date March 12th

A suspension of Mark-to-Market accounting would whipsaw spreads in dramatically across all markets, but it would be most noticeable in CMBS. The discount in CMBS is much more a liquidity event, rather than a credit/fear event. If they suspend it altogether, it means a huge rally across the board - equities, corporates, MBS, etc.

The house is going to have a talk about it on Thursday.

No comments: