Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES


Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 23279666
Expiration DateTime: 2/10/2012 8:15:26 PM

TRADER TALK VIDEO GALLERY

» More

Current DateTime: 08:14:34 10 Feb 2012
LinksList Documentid: 30483322
Expiration DateTime: 2/10/2012 8:15:22 PM

TRADER TALK RSS FEED

» Help

Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 30456179

MOST SHARED


Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/10/2012 8:15:45 PM

Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 23452000
Expiration DateTime: 2/10/2012 8:15:40 PM

Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/10/2012 8:15:24 PM
Trader Talk Video Gallery
Insight on concerns over recession risks in the U.S. and Europe, with David Darst, Morgan Stanley Smith Barney, and CNBC...
CNBC's Bob Pisani and Art Cashin, of UBS, discuss whether there will be much progress in a debt solution for Greece and ...
Taking the pulse of the $1 trillion ETF industry and where to invest, with Gus Sauter, Vanguard Group and CNBC's Bob Pis...
Using ETFs to manage risk and volatility, with Nick Cherney, VelocityShares, and CNBC's Bob Pisani. Also, Scott Nations,...
ETFs are gaining but still not overtaking mutual funds, reports CNBC's Bob Pisani.
The manager of the world's two largest ETFs, Anthony Rochte, State Street Global Advisors, discusses how ETFs are changi...
CNBC's Bob Pisani and Art Cashin, of UBS, discuss the markets' lack of response to the Greek deal. Cashin asks what will...
CNBC's Bob Pisani and Art Cashin, of UBS, discuss the market drop and concerns the ECB's Draghi may not be able to help ...

Trader Talk

Text Size
Apr.23
2:50 PM ET
Thursday, 23 Apr 2009

Can ETFs Help Solve The Toxic Mortgage Problem?

Toxic mortgage backed securities are a major problem-the issue is how to get private investors involved in buying the assets, mostly mortgage-backed securities.

True, we do have a government Public-Private Partnership Investment Program, or PPIP, where the government is lending money to investors to buy these assets.

But these are only open to institutional investors; individuals are shut out.

But there may be other solutions-there has been discussions recently about using Exchange-Traded Funds (ETFs) to buy these assets.

There are several proposals floating about; two in particular-known as "The Stahl Plan" and another being discussed by ETF provider PowerShares.

Rather than going into detail, let me refer you to the following link, where ETF expert Matt Hougan has prepared an excellent synopsis of the problem and how ETFs can be part of the solution.

By the way, earlier this year, Invesco PowerShares did file papers with the SEC to launch two new ETFs:

The Prime Non-Agency RMBS Opportunity Fund

The Alt-A Non-Agency RMBS Opportunity Fund

The problem: these would not buy toxic ETFs, specifically not subprime mortgages. They would only focus on the top tranches of the Prime and Alt-A categories.

_____________________________

_____________________________


Questions?  Comments? 

© 2012 CNBC, Inc. All Rights Reserved

CNBC HIGHLIGHTS

  • Alternative Investing: A CNBC Special Report
  • Marketing clichés aside, sometimes diamonds are for investing.
  • Nordstrom
  • The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
  • Las Vegas
  • This list of the 10 most active cities for speed traps was compiled by Trapster.com. See if your town is there.
  • This Valentine’s Day should prove a love fest for restaurants, as many couples will be dining out.
  • Airdale Terrier
  • Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
  • Jennifer Aniston and Justin Theroux home
  • What kind of homes do celebrity couples share? Here’s our updated list. Take a look.

Current DateTime: 08:14:35 10 Feb 2012
LinksList Documentid: 23279666
Expiration DateTime: 2/10/2012 8:15:26 PM


Current DateTime: 09:37:12 10 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 02:33:41 10 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 11:35:13 10 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 02:56:30 10 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters