Real Estate Question
Why would any firm buy these so called "Toxic Mortgages"?
Asked by TeachMeMore in
Real Estate
4 months ago
Answers
1782 points
ChaosNantuko answered 4 months ago …
Every asset has some amount of value, however small. Half the problem with these, so called "toxic mortgages" is the fact that, given the current mess, we don't know how much they are worth. but they are worth something. If a firm could get these toxic mortgages at a price low enough, then they could achieve a high return on investment, albeit with a higher amount of risk.
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