Blog: CreditSpectrum

Cash Is Not The Answer To Financial System Stability

There are a lot of theories being floated on how to effect financial system stability. Most involve separating money from finance. Reverence for money or cash is evident in the Chicago School of economics and neoliberalism, where value theory is based on price. It also underlies theories that equate......

Can Congress Do Something Smart Here (in Financial Reform)?

Elizabeth Warren says Apple’s Ireland moment should be the catalyst “for Congress to fix our own corporate tax code” so large corporates pay a larger share of taxes, incentivize job growth and level the playing field for small businesses, who presently pay the lion’s share of our federal......

Automatic Synthesis of Tri-Diagonal Markov Transition Matrices: A Failure of the Inverse Ferron-Frobenius Algorithm

ABSTRACT: Sylvain Raynes experimented with a method developed by Goya and Boyarski (1993) to standardize the synthesis of conditional Markov transition matrices for deal entry in our automated re-rating system, ABSTRAK®. In the analytical literature, the reverse-engineering of a Markov matrix from its spectral-radius eigenvector is referred to as the Inverse......

Thank (or Blame) Adam Hartung for this blog

Adam Hartung wrote a great column in Forbes on thinking prospectively.  So good, I took it on board to frame a conversation about R&R. Stop waxing eloquently about what you did last year or quarter. Yesterday has come and gone. Let’s talk about the future. In 2015,......

Taylor Swift & Art Finance Experiments

What is a song worth? Who creates the value: the songwriter, the singer, or the “star-maker machinery behind the popular song”? Perhaps all three, but how to divvy up the spoils equitably? Taylor Swift’s decision to withdraw from Spotify has become a flashpoint for such questions.......

Chang on Changing Economic Dialogue

We can try to change the system, or we can try to change human psychology and behavior. For my money, attempting to change the system by substituting one vision for another is a better way to change the dialogue. Ha-Joon Chang is a Cambridge economics professor, Guardian......

Can funding for renewable energy ever be AAA risk?

Twenty years ago, rating agency analysts disagreed on whether non-AAA corporations could issue AAA-rated structured securities. Aircraft finance was the poster child of the debate. “Impossible. Too volatile,” corporate analysts reasoned. Structured analysts would retort: “Not even $1 of securities can be funded at AAA?” And, if $1 can be......

Thomas Piketty: Le Monstre Sacré

Over the last few weeks, much ink has been spilled in an attempt to refute, undermine and marginalize the book “Capital in the 21st Century” by Thomas Piketty, a French economist. In some, unsurprisingly British quarters it has even reached the level of “the lady......

Alibaba’s business model

Two days ago, Business Insider published a good summary of little known facts about Alibaba. Several facts highlight how the mega trade-web dwarfs competitor e-commerce platforms in the U.S. and in China on several critical measures, including employees, registered users, web visits, sales throughput (on......