Risk USA: Simpler structured products needed

Mason pointed to the auto and credit card sectors as examples. In these industries, the most complex securitised deals have four waterfall tranches, as opposed to 25 tranches, commonly in collateralised debt obligations (CDO) referencing subprime mortgage-backed securities.

“The auto and credit card sectors decided a long time ago, because of similar distressed situations, that they are in the business of making auto loans and issuing credit cards, and they want to be funded no matter what t

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