Talking point - The end of the acronym?

MEHERNOSH ENGINEER - SENIOR CREDIT STRATEGIST, BNP PARIBAS, LONDON

While the process of securitisation and CDO tranching allows for the distribution of various layers of economic risk, its present misrepresentation of the risk/reward ratio by market participants and rating agencies is to be blamed for the subprime crisis.

Historically securitisation has worked well for corporate credit, both in cash and synthetic form, due to the long history of transition matrices and default rates, which signif

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