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Dude, where’s my liquidity? 

Nov 10, 2009By

PennyMac Mortgage Investment Trust is planning to buy up newly issued loans and package them into bonds. A posting at Bloomberg has the scoop today. The conduit arm of PennyMac would buy the mortgage loans as short-term investments. It sounds promising in terms of short-term funding, but the question remains whether this conduit vehicle will last: Has the industry already forgotten the short-lived MLEC dreams?

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