{"id":540,"date":"2009-07-10T14:33:11","date_gmt":"2009-07-10T14:33:11","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/07\/morgan_stanley_plan_to_repacka"},"modified":"2022-03-09T15:54:46","modified_gmt":"2022-03-09T21:54:46","slug":"morgan-stanley-plan-to-repacka","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/morgan-stanley-plan-to-repacka\/","title":{"rendered":"Morgan Stanley Plan to Repackage Low-Grade Debt Obligations Then Sell These as Low-risk AAA Bonds is “Preposturous,” Says Stockbroker Fraud Lawyer Bill Shepherd"},"content":{"rendered":"

\t\t\t\tMorgan Stanley<\/a> is taking low grade collateralized debt obligations, repackaging these in into new pooled securities and obtaining questionable AAA ratings. The broker-dealer plans to sell $130 million CDO’s this way in a manner similar to the way banks have been dealing with commercial mortgage-backed securities. The repackaged CDO is to a great expent a copy of a CDO put together by Goldman Sachs Group in 2007 using bonds from Greywolf CLO I Ltd.<\/p>\n

$87.1 million of securities are expected to receive the AAA rating-the offering is 89 cents on the dollar-the second portion is $42.9 million of securities that Moody’s Investors Service have rated Baa2.<\/p>\n

According to Sylvain Raynes, an R&R Consulting principal, many insurers and banks can only buy AAA. She says that by making AAA out of not AAA, people with AAA “on their forehead” can purchase.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Morgan Stanley is taking low grade collateralized debt obligations, repackaging these in into new pooled securities and obtaining questionable AAA ratings. The broker-dealer plans to sell $130 million CDO’s this way in a manner similar to the way banks have been dealing with commercial mortgage-backed securities. The repackaged CDO is to a great expent a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3752,3787],"tags":[],"class_list":["post-540","post","type-post","status-publish","format-standard","hentry","category-collateralized-debt-obligation","category-financial-firms","category-morgan-stanley"],"yoast_head":"\nMorgan Stanley Plan to Repackage Low-Grade Debt Obligations Then Sell These as Low-risk AAA Bonds is "Preposturous," Says Stockbroker Fraud Lawyer Bill Shepherd — Investor Lawyers Blog — July 10, 2009<\/title>\n<meta name=\"description\" content=\"Morgan Stanley is taking low grade collateralized debt obligations, repackaging these in into new pooled securities and obtaining questionable AAA — July 10, 2009\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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