🏠Dr. Berry wants to bet against the housing market by buying swaps on mortgage bonds.
💸Wall Street is eager to take the opportunity of offering free money.
💰Dr. Berry is concerned about payment in case of solvency issues with the bank.
🔁A pay-as-you-go structure is offered, where payments are based on the success or failure of the bonds.
📈Dr. Berry evaluates the prospectuses on mortgage-backed securities before making a decision.
Why does Dr. Berry want to bet against the housing market?
—Dr. Berry believes that the housing market will fail and wants to profit from it by buying swaps on mortgage bonds.
Why is Wall Street eager to offer free money?
—Wall Street sees an opportunity to profit from Dr. Berry's bet against the housing market.
What is Dr. Berry worried about?
—Dr. Berry is concerned about payment in case the bank faces solvency issues.
What payment structure is offered to Dr. Berry?
—Dr. Berry is offered a pay-as-you-go structure, where payments are based on the success or failure of the mortgage bonds.
What does Dr. Berry do before making a decision?
—Dr. Berry evaluates the prospectuses on mortgage-backed securities.
00:04Dr. Berry wants to buy swaps on mortgage bonds as a bet against the housing market.
00:19Wall Street is eager to take the opportunity of offering free money.
00:25Dr. Berry expresses concern about payment in case of solvency issues with the bank.
01:41A pay-as-you-go structure is offered, where payments are based on the success or failure of the bonds.
01:59Dr. Berry evaluates the prospectuses on mortgage-backed securities before making a decision.
