Bottom Fishing

Some of the biggest players in the U.S. mortgage-backed securities market see previously unheard-of values in this downtrodden sector.

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If the end of the world is near for the credit markets, word hasn’t reached Durham, North Carolina. The city is home to $26 billion institutional money manager Smith Breeden Associates. To the firm’s top executives, the current turmoil offers the chance of a lifetime.

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