Sylvain Raynes was one of six independent leading experts of banking and financial intermediaries who spoke at a recent panel discussion in New York organized by Nouriel Roubini’s RGE Monitor and attended by more than 150 private and financial sector professionals. Apart from Sylvain and...
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 not symmetrical, and that the boundary...
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 road of securitization. Maybe you have...
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 verdict was that nothing good was...
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 define what a basis point means,...
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. The endgame, to get a monoline...
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: what will the next six months...
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? Do we secretly desire a return...
By Caroline Baum Aug. 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 a global liquidity and credit squeeze. How...
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 contracts. CDSMetrics uses a loss distribution...