If you wanted to short the housing market in 2007 you could just buy protection on mortgage-backed securities via a synthetic CDO, and that’s what John Paulson did in the Abacus deal, for which Goldman Sachs and Fab Tourre got in trouble. But the problem with that is that buying protection costs money; just for…
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Tags: ABACUS, ACA, CDO-squareds, cdos, Fabrice Tourre, Goldman Sachs, How about if you had found it on the floor?, John Paulson, Magnetar, Paulson & Co., SEC
