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Not sure this is correct. I think rams has gone in with a strong offering first up - even though loc doc loans are present the security is backed by loans with an average of only 60% LVR and is fully insured. Unlike some subprime before, the valuation of the underlying assets would have to fall over 40% before defaults would become a problem, even assuming no insurance. I have heard that one of the initial backers at 52bp has 'strategically' pulled out and there is a bit of game playing regarding forcing rams to accept a high price in the knowledge that this price is likely to set a ceiling for future raisings.