Blog: CreditSpectrum

To Boomers, shave and a haircut, two bits brings back memories of Looney Tunes. It’s also the essence of what is wrong with structured finance credit ratings. Wait, do structured finance credit ratings still need fixing? Many assume the answer is “no” because the causes of the GFC......

Michael Bright, the incoming president and CEO of SFIG, the U.S. securitization lobby, has pledged “to provide meaningful education, advocacy, and connection for our members across all aspects of securitization.” The former EVP and COO of GNMA established his mortgage credentials working for former Senator Corker......

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......

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......

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......

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,......

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.......

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......

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......