tag:blogger.com,1999:blog-7273300.post5735846855968319993..comments2023-10-25T00:58:56.337-07:00Comments on Educational Whisper: See How The Taxpayer Got Screwed In The Front End, and Will be Screwed in the Back End Of The Credit CrunchAnonymoushttp://www.blogger.com/profile/00175864473859312508noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7273300.post-39730340993247007182009-02-26T14:00:00.000-08:002009-02-26T14:00:00.000-08:00Close but no cigarThe collateralized mortgage prob...<I></I><BR/><B>Close but no cigar</B><BR/><BR/>The collateralized mortgage problem is that sales were packaged and sold by payment tranches. All the first payments (say, first year payments) go into the golden tranch, all the second payments go into the silver tranch, and all subsequent payments go into catch-all tranches. Mortgage durations vary but are thought to average about seven years. Anonymousnoreply@blogger.com