We are the CDO makers, and we are the dreamers of dreams. Betting on lone loss triggers, and trading in eclectic teams. Spread losers and yield forsakers, for whom the pale bonus gleams. Yet we are the sole underwriters, of the deals, forever it seems! Fantasia on a Theme by William Blake All over...
...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...
It's probably fair to say that, at this very moment, many of you are looking for an easy resolution, something that would enable you to move on, to accept the unacceptable. You are wondering how the devil we got here, how we could possibly "lose"...
"In the late '90s, research and development at Moody's slowed right down," says [Ann] Rutledge. "The banks caught up. And then they came to be the ones in the lead." As the structured finance arms race accelerated, Moody's and its peers became more passive participants....
...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...
The concept of fair market value is as old as the 1587 edition of Blacks Law Dictionary. It is exactly the same in the Merriam-Webster dictionary (1901):...
As the world struggles with economic meltdown, the search for solutions requires a thorough understanding of the roots of the problem. If you think you're confused, the presentation by R&R's Ann Rutledge at the Japan Society on October 2, 2008, will show you why. Ann's...
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?...
Ann Rutledge will join a panel of experts at the Japan Society in New York City on Thursday, October 2, analyzing the root causes of the current financial market turmoil and assessments of the future of the U.S. and global economies. The discussion, which will...
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...