Thursday, February 5, 2009

Worst Sales Pitch Ever

A friend sends along what has to be the least attractive description of an investment firm's strategy ever:

We invest in what we believe to be the premier asset-backed securities in the world - U.S. residential mortgage-backed securities issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. We enhance the return on our investment in these securities by using leverage. Similar to a bank, we seek to earn positive net interest income from the difference between the yield on our securities and the cost to finance them.
So let's recap: U.S. residential mortgage-backed securities? Check. Leverage? Check. Similar to banks? Check. What could posssibly go wrong? Maybe it's time to update the ol' website. Just a suggestion.


Anonymous said...

i own the stock, and i think maybe mr grant does too. doing just fine since the Q4 debacle.

nothing wrong with being honest about what they do -- unlike the majority of fund mgrs....

Economics of Contempt said...

Oh I wasn't commenting on the quality of the firm, since I don't really know anything about it. (That's why I refrained from using the firm's name.) I was merely commenting on the amazing tone-deafness of the description.

It would be hard to write a description including more phrases that investors currently consider repellent. (1) "Asset-backed securities," (2) "U.S. residential mortgage-backed securities," (3) "leverage," (4) "similar to a bank." Maybe they should throw in a reference to CDOs just for good measure!

The firm may simply be being honest about what it does, but I think we can both agree that its current description isn't likely to win them a lot of new business.

Anonymous said...

Anon 10:29 here:

No real argument. Just expressing my admiration for stubbornly honest people, a characteristic sadly in short supply.

Runescape Gold said...

whatever you accomplish is simply thus mystical and exquisite. adored this. WOW Gold
Cheapest Gold WOW

Trần Duy Thuận said...

Trần Duy Thuận Blog đang cần nhận gia công tại nhà. Ai có cần người nhận gia công tại nhà tphcm liên hệ mình nhé. Truy cập vào đặt vé máy bay giá rẻ vietjet để có thêm kinh nghiệm khi đi máy bay nhé.

Fire Ball said...

Khi đến với thằng ghờm shop nơi chuyên cung cấp đồ điện máy cũ hàng đầu với chất lượng đảm bảo. Đến với thằng ghờm bạn có thể tìm thấy máy lạnh cũ giá rẻ, máy giặt cũ giá rẻ nơi chuyên bán tủ lạnh cũ giá rẻ. Hãy đến với chúng tôi để tìm thấy cho bạn sản phẩm bạn cần.

Cập nhật những kiến thức mới lạ như atsm là gì, thẻ tín dụng là gì,... qua mục kiến thức tổng hợp.