From a sales director from the structured products division of a US bulge bracket brokerage...
The takeaways are MLEC won't fly, SIV CP is worthless and the market is defunct, the monoline insurers are non-investment grade entities (Just check their CDS, It's at 650 today). They will survive only because the language in the insurance contracts allows them to delay payments of principal on defaulted debt until the very last cent of value is eroded or matured. Most mezzanine subprime debt will go to 0, and anything trading at this point is moving between 5 and 8 cents on the dollar.
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