>>60859120
I think its more about the implication that they were expecting BBBY to get naked shorted to death so they were pawning off CDO's filled with "worthless crap" onto peoples pensions.
But theres a couple of problems here, CDO are like MBS except they hold general purpose debt instruments where as MBS holds mortgages exclusively. So them placing corporate bonds in MBS is highly illegal and would seem to signal that they are hiding the BBBY bonds from CDO's and instead slipping them into MBS because (most likely) different reporting requirements so it is harder for government or researchers to see that there are probably way more BBBY bonds circulating than were ever issued by the company, AND were never borrowed, AKA the bonds are naked shorted to hell and back so when shareholders are made whole and bonds are payed off prime brokers have to cover not only tons of naked shorted shares but also naked shorted bonds too.
