Image via Wikipedia

Last week, we saw the death of the first four letter acronym. The first ever Constant Proportion Debt Obligations (AKA: AAA superbonds, holy grails of structured finance, hydras, unsinkable instruments) have hit their cash-out triggers. ABN's SURF CPDO bonds died painfully in their sleep (see the FT). We hope the epidemic does not affect the three letter guys. By the way, the guys who gave the CPDO triple A and similar things are told to be not to reliable. At least so think Roman Frydman, Michael Goldberg and Edmund Phelps. But the impact of this is worse. Another cadaver left by the credit crunch. We now know, according to the authors aforementioned, that it's not true that markets are efficient!

www.HedgeFund-Lawyer.com

Write comment

Your Contact Details:

Name:

Email: do not notifynotify

Website:

Comment:

Title:

UBBCode:         -color-aquablackbluefuchsiagraygreenlimemaroonnavyolivepurpleredsilvertealwhiteyellow -size-tinysmallmediumlargehuge

Message:

Security

Please input the anti-spam code that you can read in the image.