http://www.dealbreaker.com/images/pdf/HaymanJuly07.pdf
If you haven't read this you have got to read it!!
This write-up sums up my views very well. If everything he is saying is true it is worse than I even thought. Everything I know is true except the house price decline in the central valley in California. That seems extreme or exaggerated. Also not sure on the math for the mezzanine CLO's about the leveraging 10X to 20X and "poof making 80% of the structure rated AAA by the rating agencies." Someone would have to explain that to me and diagram it out. In general though the principal of what he is saying about all the CDO and CLO's are dead on. I had not heard of this fund but they seem to be legit and all you got to do is look at the last name of the managing partner (assuming you know who the super wealthy families of Texas are) to know he is very well connected.
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