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Home » Store » News » Firm Offers Advice on the Best Way to Hedge Subprime Mortgage Securities

Firm Offers Advice on the Best Way to Hedge Subprime Mortgage Securities

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Salomon Smith Barney says the two most commonly used hedging models don’t work well for subprime mortgage securities because they don’t realistically represent the price dependence of these investments to interest rate movements. But combining the two methods might be the best strategy.
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