In Rope-A-Dope 101, we said there are five ways to mask the credit quality of a structured bond, that it is done by manipulating an “invisible” boundary where the consequences of being on one side or the other are […] Continue Reading…
The high road of securitization is forward-looking. It promotes economic growth and rewards superior asset quality. Securitization is alive and doing well in grass-roots economies. But maybe you have not come to our blog to read about the high […] Continue Reading…
The last entry in this journal was rather pessimistic. In it, we recounted what was likely to happen from the Fed’s irresponsible attitude towards cutting interest rates without a workable plan in mind about what to do next. Our […] Continue Reading…
By admin | Published:
January 28, 2008
Just a few days ago, the Board of Governors of the Federal Reserve pumped enough cash into the US economy to lower interest rates by 75 basis points. For the average American citizen, who would be hard pressed to […] Continue Reading…
In early 2004, we were asked to join a professional support team to help a new equipment lessor get financing through the structured market. The premise of the deal, the team, and our role in it, were not new. […] Continue Reading…
By admin | Published:
December 31, 2007
The last six months have brought American finance to the edge of the abyss. Mortals who, not so long ago, had seemingly achieved demiurge deal-making status are now experiencing their Götterdammerung. A single question now poses and imposes itself: […] Continue Reading…
So, structured ratings are not good indicators of secondary market value, and market prices are not working their usual magic. Why are we surprised? More importantly, how do we want the sector-wide securitization crisis of confidence to turn out? […] Continue Reading…
By admin | Published:
August 24, 2007
By Caroline BaumAug. 24 (Bloomberg) — Ever since financial markets went into their summer swoon, economists, analysts and journalists have been trying to explain why a small number of defaults on a small number of home loans morphed into […] Continue Reading…
By admin | Published:
August 13, 2007
R&R Consulting will launch a CDS of ABS valuation engine, CDSMetrics. This includes CDS contracts written on individual tranches of RBMS transactions.CDSMetrics is a web-enabled application successfully used by hedge fund clients of R&R to value CDS of RMBS […] Continue Reading…
By admin | Published:
August 7, 2007
Ever wonder what it’d be like to steer a portfolio through today’s turbulent credit market? Now you can!”The Accidental Trader”, an online game developed by New York-based structured finance consultancy R&R Consulting simulates the real-life experience of a risk […] Continue Reading…