Opportunity In A Meltdown?
Not everyone is shutting down or cutting back amid the current mortgage industry meltdown. Some mutual fund managers see value in snapping up bonds backed by mortgages that are being unloaded at firesale prices.
Legg Mason's Bill Miller told the Wall Street Journal (subscription required) that he regarded Thornburg Mortgage's recent sale of $20.5 billion of top-rated mortgage-backed securities as an attractive investment. "That was a once-in-a-generation opportunity to buy that paper," Miller told the paper. "The area of mortgage financing is seeing all kinds of dislocations" to take advantage of.
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