Truth and responsibility

The meltdown in subprime collateralised debt obligations will affect financial markets for years. One likely result will be a renewed market willingness to reward sound credit underwriting - and therein lies a valuable business opportunity, argues David Rowe


In a recent speech, Vaclav Havel, first president of the Czech Republic, offered an interesting perspective on what constitutes truth. In effect, he said "truth is information supported by responsibility". Perhaps without fully realising it, Havel eloquently captured a central failing that led to the crisis in the subprime collateralised debt obligation (CDO) market. In the rush to capitalise on investors' seemingly insatiable thirst for yield, many banks and other mortgage originators abandoned

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here