Daily Price Movement / General Discussion, page-27817

yes that's perfectly fine. but you are harping on about certain (yes not literally, but essentially for your fear mongering purposes) bankruptcy and insolvency. how do you square that with the junk bond rating (care to share what that is, i.e. that "low rating" and what the theoretical probability of default is?) of Zip Co Limited and the Aaa rating of the ZIP master trust? Do you think NaB hung their hat entirely or partially on the security provided for the trust portfolio (hint - they do not: this feeds into LGD, this is not the same as probability of default) and/or do they not bother with due diligence of performing related entities before potentially throwing away $500m or at best the associated time and costs associated with getting back the loss on liquidating the securitized portfolio?