Banks scramble to set up illiquid trading desks
The tight spread environment has forced banks to seek out ever more esoteric assets to structure, setting up specialist trading desks in the process
Illiquid structured credit trading is one of the hottest areas of structured finance, as spread tightening has shrunk revenues in commoditised structured products and led to a frantic search for higher-yielding assets. From microfinance to insurance risk, tobacco settlement financing to intellectual property, banks are searching for undervalued illiquid assets to structure.
"Investors are agnostic
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