By admin | Published:
March 18, 2009
“The system was undermined by asking the American people, under the veil of secrecy, to bail out one company when in fact they wanted to bail out someone else,” said Sylvain R. Raynes, an authority in structured finance and a founder of R & R Consulting, a firm that helps investors gauge debt risks. “The […]
Also posted in Sylvain Raynes |
An article by Anousha Sakoui and Nicole Bullock in Financial Times entitled “Liquidation risk grows as DIP finance dries up” is one more piece of evidence that hybrid systems don’t work. I’m referring here to the two corporate bankruptcy systems the U.S. has put in place: one designed to help companies get back on their […]
Step 1: For God’s sake, relax! Everyone is so uptight right now that we can’t even think. We will only get out of this mess by thinking, not by reacting prematurely with adolescent measures and childish pronouncements. Step 2: Suspend all further Treasury loans to Wall Street until the situation can be clarified by valuing all subject […]
By admin | Published:
November 26, 2008
…Under the new Term Asset-Backed Securities Loan Facility, the Treasury will use taxpayer funds to protect the Fed against the first $20 billion of losses, or 10 percent, of $200 billion in exposure to AAA rated securitized consumer debt. “I am willing to believe that these things that are rated AAA might have a maximum 10 […]
By admin | Published:
November 4, 2008
…Echoing some other experts, Ann Rutledge, a credit derivatives expert and founding principal of R&R Consulting, said she is not sure how badly the financial system would have been rocked if the government had let AIG file for bankruptcy protection. But she fears that the government is papering over the problem with a quick fix […]
It is now clear that for years we have been putting our money where our mouth isn’t. Non-recourse, off-balance sheet finance, a.k.a. securitization/structured finance, is about the value of a pool of loans where the risks are redistributed inside a structure. What are the loans worth? And what are securities worth that are backed by an […]
By admin | Published:
September 29, 2008
What do you make of the provisions (draft bailout bill 132, 133) authorizing the SEC to suspend mark-to-market (MTM)? Do you think they will exercise this authority? What’s the buzz on the Street? Would suspension just create more confusion and uncertainty? Also, a study of mtm should prove interesting. Even the mere call for the study would […]
By admin | Published:
September 23, 2008
Federal Reserve Chairman Ben S. Bernanke signaled that the government should buy devalued assets at above-market values to make its proposed $700 billion rescue package most effective in combating the financial crisis…. Analysts said Bernanke is essentially advocating that government use a pricing model that assumes that the debt will be paid in full over […]