Banks look to offload structured credit assets as prices recover

Making good on bad assets

Lumsden, CQS: New York Fed not a forced seller

Shifting so-called toxic assets into bad banks became a lifeline for financial institutions during the crisis. With many banks all but crippled by mounting losses on distressed assets during the worst of the upheaval, the ability to transfer them to special-purpose vehicles (SPVs) or other ring-fenced entities, and therefore gain protection from further mark-to-market volatility, helped restore confidence to the financial sector.

“A bad bank is a great concept, because it releases the remaining

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 [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: