RAIT Fails to Shed Light on Debt Deals

RAIT Financial Trust's(RAS Quote) latest earnings release seems to be written by attorneys who have mastered the art of selective disclosure.

That's because in reading between the lines, numerous questions remain about the company's exposure to collateralized debt obligations tied to the plummeting housing market.

RAIT's stock has slid 45% over the past three days after the company disclosed it has $95 million of equity exposure to the trust preferred securities -- a hybrid of debt and preferred stock -- issued by American Home Mortgage(AHM Quote), a lending company that could be facing bankruptcy. ...