» Posted by Martin Weil on July 02, 2007

"A 30-year Fannie Mae inverse floater issued in early 2005 and sold by Brookstreet was designed to pay a maximum return of 23.25 percent. Current interest rate: Nothing.

"(Brokers) kept telling me 'You're going to make money,' " said Gary Stephens, a Brookstreet investor in Missouri. When his monthly statements showed his CMOs declining in value, Stephens said, brokers told him "there was more money there than the (statement) showed.""

From the Orange County (CA) Register

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