the banks created their own hedge fund like vehicles
called CDOs and alikes and sold it to customers who
need a rating and think in basispoints. they created
their own hedging vehicles in form of tranched credit
indices like CDX and Itraxx. question: after the business
model has been changing, what will be left from that
era? is the substance of tranched credit strong enough
to stay alive? my guess is yes, but i am not sure.
i believe for the next year or two the potential buyer
group has been imploded or is going to.
called CDOs and alikes and sold it to customers who
need a rating and think in basispoints. they created
their own hedging vehicles in form of tranched credit
indices like CDX and Itraxx. question: after the business
model has been changing, what will be left from that
era? is the substance of tranched credit strong enough
to stay alive? my guess is yes, but i am not sure.
i believe for the next year or two the potential buyer
group has been imploded or is going to.