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Waterfall’s Jack Ross Talks Structured Markets: Credit Crunch

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The Correlation Between Consumer Credit Performance and Unemployment

The consumer is a point, really something that's really important here at Waterfall. We do have allocated quite a bit at times to consumer assets. The story right now is if you look back over the last 40, 50 years of data, what you'll find is consumer defaults are highly correlated to unemployment. And those two curves lie right on top of each other over the course of the last 50 years.

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