Stop Making Nonsense

“If everybody is playing by the same set of rules, whether you are talking about loan origination or securitization, then it becomes very hard to game the system. The lack of definitions is a huge problem… If the Congress, the SEC and the FASB, and the financial regulators only do one thing this year when it comes to reforming the world of structured credit, then it should be to impose by law and regulation common standards for the definitions used in the marketplace.”

This is the key point in a hard-hitting and wide-ranging interview with R&R’s Ann Rutledge at The Institutional Risk Analyst. Among other points, Rutledge addresses the problem of basis risk in ABS: “The cash is the best indicator of what synthetic value really is. If the cash market were visible and could be examined by all participants, then it would give away the ability of the dealer banks to tax participants in the market and extract these abnormal returns.”

Read the full article at The Institutional Risk Analyst: “Back to Basis for Securitization and Structured Credit: Interview With Ann Rutledge

Tags: , , , , , ,

Trackback from your site.

Leave a comment

theSpectrum

Smiley face

Latest Post:

Kaisa Group Holdings Ltd (佳兆业集团- HK:1638) DefaultKaisa Group Holdings Ltd., a HK-listed real estate developer with large scale mixed-use real estate developments in over 30 cities in China was the first Asian credit to default in 2015. English language coverage of the story has been provided by Bloomberg, the FT, Reuters and the South China Morning Post. Chinese language coverage has been provided by Sina and Epoch […]

Click for all posts

Film Fund-amentals

Smiley face

Latest Post:

What Hollywood Thinks about ChinaHollywood’s obsession with China was a major theme of 2014. China represents the second largest film market in the world and has become a major market focus for numerous big budget American movies. It has also emerged as a bit of an enigma as Hollywood tries to second guess what the Chinese want. To Hollywood, the model for […]

Click for all posts

R&R on China

Smiley face

Latest Post:

How to incubate “AAA” technology start-ups through debt securitization20140912075903-14738342-how-to-incubate-aaa-technology-start-ups-through-debt-securitization.htm

Click for all posts

R&R微博