Yield Maintenance or Defeasance? - Posted by Eric C
Posted by Eric C on July 03, 2003 at 12:35:28:
Hi Doug -
This isn’t an “either/or” choice, is it? And do they define US securities (most likely t-bills) specifically?
Reason I ask – I’ve had some luck in the past creating mortgages through local banks (and other institutions) that passed the GSE’s critieria for underwriting, etc (might not be that hard these days for Freddie Mac, eh?)
Point being, once these things are blessed, they are highly liquid and command both a premium price and instant respect. (I used to swap these to banks for their REOS and bad paper – worked like a charm).
I would also think that some variation might work down the line for you. Maybe.
I need to think about it - talk to you later, OK?
PS - Got more info?