Deals coming up next: Structured Asset Securities Corp. 2005-WF4 (A4) and Countrywide 2005-BC5 (1A) [caption id="attachment_6051" align="alignleft" width="681"] R&R Fair Market Value, Market Price, Moody's and R&R's Ratings since Origination[/caption]   [caption id="attachment_6052" align="alignleft" width="682"] R&R Fair Market Value, Market Price, Moody's and R&R's Ratings since Origination[/caption]    ...

There must be mornings when the typical indie filmmaker barely can crawl out of bed. On the receiving end of so much bad news, it's a miracle he or she can even get in the mood to dress before noon. Barely a week goes by without some new post of doom and gloom for the indie business. For example, a recent blog piece by Ted Hope could be mistaken for a zombie alert warning. Actually, it is an important read for everyone in the indie business. But man oh man, there are times when ol' Ted starts to sound like one of those depression ads on TV. Unfortunately, Hope does have some very good points. Especially in regards to the recent article in The Economist titled Hollywood: Split Screens. In turn, this article does a solid job of outlining many of the reasons why the current Hollywood business model is busted. Busted?  It's way past that point. Heck, the Hollywood business model is in worse shape than a guy who has just been run over by a truck and the truck driver backs up to see what that “bump” was in the road. Under the current Hollywood model, you spend around $300 million making a film and then hope to score a billion globally in its release. Once in a blue moon, a movie succeeds in pulling off this stunt. This is called dumb luck, and luck is not a business model. This tent-pole madness has had profoundly negative consequences for indie movies.

Talking about the SEC is like talking about "the Chinese government," "the United States," or any other large assemblage of people that are made up of different factions with different personalities, subcultures, policy preferences and goals. The SEC Division of Investment Management, in 1992, published a...

The words “boobs” and “Academy Awards” have often appeared together in a sentence. Normally we have meant the non-anatomical meaning of boobs. But not this year. In a pitch to a younger demographic audience model, the Oscar presentation went on a bumpy joy ride combining its usual institutional blandness with an occasional bitch slap at the audience. I don't mean the TV audience. I mean the fancy-dressed folks sitting for more than three and a half hours like hostages in the Dolby Theatre. I am not particularly interested in debating Seth MacFarlane's handling of the hosting duties at the Oscars. Hosting this show has to be one of the most thankless jobs around. An Oscar host is expected to be a toothless court jester. They are suppose to spoof the business but not the egos as they provide biting commentary but only so long as they lack either bark or bite. No wonder Billy Crystal doesn't want the lousy job. To be honest, MacFarlane was better than David Letterman. But then, a colonoscopy was funnier than Letterman. Of course, I also thought that Chris Rock did a swell job back in 2005, so I am not speaking from a mainstream Academy perspective. However, the fallout from this year's Oscar presentation has been a singular spectacle. Granted, every Oscar show has its controversies, things like, “How did the movie Crash ever get nominated, less alone win” etc. But this past week most press reports have been so obsessed with women's breasts and Anne Hathaway's nipples, I'm beginning to confuse the Oscars with lunch at Hooters.

France and the United States' often tempestuous relationship hit another sour note this week after the CEO of Titan Tire company sent a letter to Arnaud Montebourg, the French Minister of Industry, in which he clearly and very undiplomatically lays out the reasons that Titan Tire will not be taking over a struggling Goodyear factory in the French city of Amiens. The CEO, Maurice Taylor, writes: I have visited that factory a couple of times. The French workforce gets paid high wages but works only three hours. They get one hour for breaks and lunch, talk for three and work for three. I told this to the French union workers to their faces. They told me that’s the French way! …Sir, your letter states that you want Titan to start a discussion. How stupid do you think we are? Titan is the one with the money and the talent to produce tires. What does the crazy union have? It has the French government. Not surprisingly, this has created a furor in France, and when I read the comments accompanying some of the articles, most of the them were in agreement that this sort of letter was exactly what one should expect from rapacious American companies.

According to a recent Sky News report, China will soon outstrip Hollywood in film production. In a recent piece from the Agence France Presse, China is now number two to the US market in ticket sales. Though Hollywood movies produce the stronger revenue at the Chinese box office, there are increasingly powerful exceptions. The biggest current hit in the Asian market is the Chinese movie Journey to the West. Of course, all estimates about who is number one in the international market is always open to debate. It depends upon how you frame the question. The American box office is number one in the amount of money made primarily because of the cost of tickets in the US. In reality, American movie attendance has been in steep decline for years (and will continue dropping). Heck, that attendance decline is one of the reasons why theaters keep upping the ticket cost. Likewise, American mainstream movie production has dropped. Currently, Hollywood only produces about 15 per cent of the movies made internationally. We are way behind India in the amount of movies made, and almost as far behind as Nigeria. Eventually, Nollywood will surpass Hollywood in sheer terms of output. But does this matter?  After all, we have Johnny Depp and they don't. More importantly, Hollywood has the kind of money that can buy Johnny Depp, and they don't. Money – and lots of it – has always been the secret to Hollywood. In theory, the Hollywood cinema took global dominance because of its superior quality. In reality, it had to do with a series of extremely convenient historical factors.

R&R has 8 out of the 10 required letters for NRSRO designation. The Office of Credit Ratings (OCR) at the SEC only considers one valid. A key area of disagreement is whether our valuations, calculated directly from our ratings, deserve to be considered "nationally recognized...

Introduction Have you followed the strange fate of the $14.8 BN merger involving ALCATEL, the French telecommunication conglomerate, and ATT's now-defunct spin-off, Lucent Technologies Inc.? That mythical transaction, which has been shedding red ink ever since it closed, was consummated on December 1, 2006, and with much fanfare, we might add. At last, ALCATEL had a pied ä terre in the USA. What could be better than this? Actually, bankruptcy would have been better. While the deal was effectively a take-over of Lucent by the French giant, it turned out, most likely for political reasons, that the former CEO of Lucent Technologies, the American Patricia Russo, was duly nominated as the first post-merger CEO. She did not last too long, as was to be expected from someone attempting to run a quintessentially French company-cum-government bureaucracy who doesn't speak French. The last happy day for shareholders of the “new” ALCATEL was the day the deal closed. Meanwhile, former Lucent shareholders have been ecstatic ever since. The smartest guy in the room was probably the ALCATEL CEO Serge Tchuruk, who bowed out gracefully after the deal was sealed. He has been thanking God ever since that he wasn't around to see so much value destroyed so quickly, by so few people, without a single shot being fired. During the last quarter of 2012, led by the Dutchman Ben Verwaayen, the company wrote off another $1.9 BN, bringing total write-offs post-merger to a staggering $16 BN. Frankly, weapons of mass destruction couldn’t do any more damage.

Previously, I outlined some major actual or impending changes taking place in the film industry. Many of these are related to distribution strategy.  But there are even more significant changes in the works. These will affect not just the production of films but also how the creative process is conceptualized. Some impending changes may even alter our conception of humanity.  But, before we lose our grip altogether, let us go back and look at film's early beginnings, since the patterns of the future usually can be found within the rubble of the past. The first film experiments were conducted in the late 1880s, with moving images.  These were very simple bits of film, like Roundhay Garden. The link I've included is to a reworked version with added title cards. The surviving version of the original is about 3 seconds long.  By the mid-1890s, Thomas A. Edison http://www.thomasedison.com/ and his company were experimenting with sound movies.  Developed for Edison by William Dickson, these short films attempted to synchronize the moving image to a wax cylinder. The first step toward the development of color motion pictures took place at the end of the 19th Century.  An early form of color film stock was successfully created in 1909.  A version of Kodachrome color film was tested and available by 1922.  Experiments in color were used in various silent films such as the 1925 version of The Phantom of the Opera. Almost all of these early experiments were half ignored and, in many cases,  forgotten. The clips I have provided links to are all relatively recent discoveries. Yet, in many respects, the technical history of the entire first century of movies can be found within these early experiments.  It just took a long while before the industry caught up with the implications. The same process is happening today.  Two recent little films on the internet are major examples of the future.  

For some, the glass is half empty. For others, it is half full. But for a few of of us, the real question is: What glass?  I see only water. Which partly sums up my own attitude when assessing the possible future developments involving the film industry and the digital revolution. Three recent blog articles do an excellent job of summarizing several key issues that have formed over the last several years. In a post titled The Independent's Guide to Film Exhibition and Delivery 2013, Jeffrey Winter of The Film Collaborative does a superb job of describing the rapidly emerging digital system for commercial movie distribution. He is especially good at outlining how a new distribution system that could (in theory) be a plus for indie filmmakers is actually being designed for increased control (as in near total control) by the major media companies. The digital distribution system that will be standard by the end of this year is a top-down structure that excludes virtually everybody (including the theaters) from any real and active say into the system. The major companies do not particularly like the digital form. In many respects, they don't really understand it and they are actually half afraid of it. But by gum, they are going to own it by hook or by crook. The glass is half empty and they want the glass. Which brings us to the other must-read blog post of the month.