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The Merrill Lynch CDO Pricing Mystery

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There are so many questions about Merrill Lynch's sale of its CDO portfolio that have gone unanswered. For starters, is the seventy-five percent financing a recourse loan or a non-recourse loan? Is it secured by the assets Merrill just sold? And, most importantly, how did the value of the portfolio drop nearly 40% in just a few weeks?
After the jump, Antony Currie of BreakingViews explains: "Pricing is about as clear as mud."