The other side of the equation, Jason, is that the institution investors are very very LOW margin for PPT. They have increasingly been targeting the HIGHER margin retail clients. As such, their profit has still been increasing - or did that escape you?
Also, you don't appear to have read or properly digested PPT's comments on their exposure and losses in the sub-prime sector. Was it a learning experience for them? Undoubtably. Would anyone seriously call $5 million in losses serious for the company? No. Oh, but I hear you say it is around the $18 million mark? Yes, as the face value of the debt has changed. However this (in the company's opinion) is "good" debt in that is not as risk of default, so as the debt matures they will get back face value, hence get back the unrealised loss. You see, PPT is smart and not selling their good debt at a bad time. Don't get confused over the wording.
You appear to be a reflex investor. Good luck none-the-less.
MJS
AFG Price at posting:
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