In principle, I think they could, because they allow investors to invest in a combination of mortgages that are not actually available in the market (the combination, that is), and as such, make markets a bit more complete.
But does the efficiency benefit synthetics create exceed the cost of their opaqueness? Would creating an exchange deliver sufficient transparency to overcome the opaqueness problem?
Tuesday, April 20, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment