Several weeks ago CNBC bought a 'toxic asset', with the help of Fast Money trader Jon Najarian.
We paid $2,100 for a slice of an A1 bond containing mortgage loans—a mortgage backed security—the same kind of investments that contributed to the financial crisis.
Once again, they're gaining popularity on Wall Street. So CNBC made the purchase to explain how these products perform, reveal what's inside them, and to help investors decide whether they should be part of their portfolios.
While the bond we bought is doing okay right now, there may be problems on the horizon. So we mapped it out.
Our first stop: New York City, to a firm called SecondMarket, where we purchased our 'toxic asset.' SecondMarket specializes in selling securities like ours. It acts as a middleman or intermediary between buyers and sellers.