Synthetics up on back of credit derivatives growth
Increased familiarity with credit derivatives is leading to a greater appetite for synthetic securitisation, according to the two main ratings agencies, Standard & Poor's (S&P) and Moody's.
Alain Carron, a director at the S&P structured finance ratings group, said the increased familiarity with credit derivatives, which allow institutions to synthetically transfer risk, has led to a shift from traditional to synthetic forms of securitisation.
The two
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