Speakers voice synthetic credit and capital structure arbitrage fears

- Navroz Patel
- 29 Oct 2003

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

“In the past, some investors in CDOs [collateralised debt obligations] really didn’t understand the product,” Mahdevan said. He urged investors not to be fooled by the ratings of single-tranche products. “Ratings refer to default risk, but they don’t tell you anything about leverage or volatility,” he added.

Mahdevan said a market for options on credit derivatives is several years away from truly hitting its stride.

Sean Keenan, a vice-president in Citgroup’s risk architecture group, said it was

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact info@risk.net to find out more.

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

You already have an account with us*. Sign in below to continue.