Would be good to visualize this over time (i.e what cracked first , then what are dependencies craked and now who is going to collapse - like the monoline insurers are next)
what cracked first is that the whole SPV2 structure was based on air by the time this machine ran twice on a original pool of subprime. Meaning that the whole ownership structure of SPV2 was actually zero. SPV2 was bankrupt.
If I read correctly, the monoline is indeed exposed in the SPV1 structure.
So SPV1 is hit, if SPV2 is bankrupt.
The whole SPV2 Equity of SPV2 was called "toxic assets",
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If I read correctly, the monoline is indeed exposed in the SPV1 structure.
So SPV1 is hit, if SPV2 is bankrupt.
The whole SPV2 Equity of SPV2 was called "toxic assets",