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What, Exactly, Do They Know That We Do Not?

No lesser source of scintillating financial analysis than the New York Post is reporting the suddenly ravenous appetite of Citigroup and Bank of America for mortgage backed securities.

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids.

The Post, surprisingly, declines to provide details so we are left to wonder. Shrewd public relations? Doubtful. Altruistic financial patriotism? We think not, but BofA claims so:

"Our purchases in [mortgage-backed securities] increase liquidity in the mortgage market allowing people to buy a home," said BofA spokesman Scott Silvestri.

Shameless profiteering? Yes, of course. But we don't suppose anyone would believe us if we said that Citi and BofA are calling an MBA bottom... would they?
Double Dippers [The New York Post]