Actually it is a rather badly-written book; but it at least provides an inside account from the perspective of a CDO structurer and manager.
But what is really interesting about this little book is how the author described the corporate players involved using very funny fake names. I think there was a hedge fund he mentioned as a very enthusiastic and substantial CDO sponsor. Wonder if he was referring to Magnetar.
Is not much different from what goes in the FX markets all the time, especially in the thinly traded currencies. Banks with large customer orders to execute will often do a head fake to disguise its true intentions. Then turnaround deliver the sucker punch out of nowhere. Bread and butter of the FX business.
This is the same thing, taken to much higher levels of sophistication.
2 comments:
TS,
Fascinating read on Magnetar.
Looking at a hedge fund CDO sponsor and their real strategies in profiting from buying into the equity tranches.
I read this little book last year:
"How I Caused the Credit Crunch" - by Tetsuya Ishikawa
http://www.politics.co.uk/reviews/culture-media-and-sport/review-how-i-caused-the-credit-crunch-$1288349.htm
Actually it is a rather badly-written book; but it at least provides an inside account from the perspective of a CDO structurer and manager.
But what is really interesting about this little book is how the author described the corporate players involved using very funny fake names. I think there was a hedge fund he mentioned as a very enthusiastic and substantial CDO sponsor. Wonder if he was referring to Magnetar.
Don
Is not much different from what goes in the FX markets all the time, especially in the thinly traded currencies. Banks with large customer orders to execute will often do a head fake to disguise its true intentions. Then turnaround deliver the sucker punch out of nowhere. Bread and butter of the FX business.
This is the same thing, taken to much higher levels of sophistication.
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