Toxic debt has been a huge problem for some time now. Can exchange traded funds (ETFs) provide the answers?
Bob Pisani at CNBC notes on his Trader Talk blog that we do have some solution in place: the Public-Private Investment Program (PPIP) will help investors buy these assets. But retail investors are shut out on that one.
Bring in ETFs. There are two in particular:
- The Stahl Plan
- A plan from provider PowerShares
Matt Hougan at IndexUniverse has the full rundown on what these plans would entail.
Incidentally, PowerShares has filed to launch two new ETFs: The Prime Non-Agency RMBS Opportunity Fund and The Alt-A Non-Agency RMBS Opportunity Fund. Only problem? They wouldn’t buy toxic assets.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.