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Prescient Mortgage Bond Portfolio Manager Closes Fund Because He’s Worried about the Market

WSJ had an interesting article last Friday on Nick Krsnich (Source Link).

Nick is a portfolio manager, who previously was the CIO of mortgage lender Countrywide Financial. He decided to close his hedge-fund for the second time in three years.

Here’s some of his juicy quotes:

“The opportunity wasn’t there anymore. I just couldn’t invest money for people at 4% or 5% yields” on mortgage-backed bonds

“predicts market price will continue to slump as the Federal Reserve becomes less active as a bond buyer”

“became outspoken critic of Countrywide’s push for market share..unhealthy embrace of risk..he left the company [before the melt-down in 2008]”

“The U.S. has been throwing more debt at a debt problem..I came out of Countrywide and if you give more debt to a person who hasn’t proven they can pay back the loan, it’s usually a situation that doesn’t work out well

Here’s a thought. Maybe we should price money and loans based on someone’s ability to pay rather than some government manipulated priced fixed number?


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  • LST

    Nice catch

  • http://www.firstadopter.com/ firstadopter

    I guess we will have to go through another crisis before we get someone like Paul Volcker appointed and in charge.