FSA Rejects LTV/LTI Mortgage Caps......

chucky

Generali wrote: »

This sounds like the rantings of an idiot (and TBH most of your posts come across like that old bean) but Goldmans I understand are putting together a new structured product which will work in a very similar way to CDOs in effect.

Whether or not they get any buyers is a different matter of course.

he does have some gems in his posts - go easy on him

they're all at it at the moment trying to get this 'new' business - you're right they're not too different from CDO's, just a bit more transparent with regards to the SPV's used. they may still be off-sheet but the capital exposure is more visible.

it's also interesting that there is a sprouting of clearing houses for Credit Derivatives around. these will work on margins so that the balance sheet exposure is more visible and in theory which banks are over-leveraged.

Generali

Thrugelmir wrote: »

In principle there's nothing wrong with securitised products. Providing when the wrapper is peeled off that the product contains what it should. Something which Lehmans were allowed to get away with.

The new Banking regulations will ensure that off balance sheet financing is counted as being as on balance sheet. Banks will be required to hold more Capital , so the risk of another NR style collapse will be greatly diminished.

I've no problem with securitisation. My guess is that buyers will be pretty wary for a very long time though. I'd need a lot of persuading to invest my hard-earned in structured debt products via a fund given the rort that just happened.

Thrugelmir

Generali wrote: »

I've no problem with securitisation. My guess is that buyers will be pretty wary for a very long time though. I'd need a lot of persuading to invest my hard-earned in structured debt products via a fund given the rort that just happened.

Greed will overcome fear.... Particularly as returns on a lot of assets will remain depressed for some time.

Conrad

Fella wrote: »

IMO logic & commonsense both overwhelmingly suggest it's coming & it's unavoidable.

Sounds like deep seated immovable perma pessimism speak.
The PP is hampered by a filtered reality view.

All PP's at all times retort with the logic weapon, but it's blunted.