Introduction to structured securites

CDOs, CBOs, CLOs Context Recent events : The financial crisis in 2008 is inextricably linked to the development of collateralized structured securities. Collateralised debt obligations were the preferred structures used to package and refinance sub-prime real-estate mortgages together with normal mortgages. When the US economy slowed and the US real-estate market collapsed, the value of the Read more about Introduction to structured securites[…]


The paradox of risk regulation and risk management

Regulation of liabilities and assets In past articles we have looked at some of the aspects of risk-management, looking at the weakness of Basel 2 (non-definition of capital) and lack of a frame-work to assure liquidity adequacy. Here we look at the way in which the crisis has illuminated the way in the regulation of Read more about The paradox of risk regulation and risk management[…]

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