Fun with ABS Archive

Foreign hedge funds thrive in China

How the hedge funds crackdown the Chinese regulatory restrictions (1) The Chinese regulator tries to calm the country’s turbulent stock markets by forbidding the short-selling and creating obstacles for foreigners to set up share and futures trading operations onshore or gain market access remotely. (2) Hedge funds create the commodity trading companies (from nuts and bolts to nickel). The profits are reinvested into the short-selling on the financial market without regulatory restrictions. (3) Apart from Citadel, big electronic trading firms like U.S.-headquartered Virtu Financial Inc are blamed for the recent sell-off, causing the current Shanghai and Shenzhen markets to fall by nearly 30 percent

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Crisis in Europe: A Very European Break Up

Enjoy the short and very entertaining romantic comedy inspired by crisis in Europe and published shortly on Youtube. She is German, he is Greek. Watch the alarm clock for more understanding about the events in the movie. 20:09 is the year 2009, the first signs of crisis in Europe. Greece delivers since years the manipulating statistics to EU, hiding the problems. What do you think about this movie? If you like it, please share it in social networks

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“Asset Encumbrance” against “Secured Funding”: fight since June 2012

In June 2012 the fight of “Asset Encumbrance” against “Secured Funding” has started. “Asset Encumbrance” movement restricts the banks in pledging the assets under securitisation and asset backed transactions.  “Secured Funding” movement rquires from the banks to pledge more collateral for their liabilities and is driven by EU bail-in regulations: in case of bank’s default the government can convert the creditors into the owners of defaulted entity

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What can by securitized? Bob Dylan bond!

Latest news in September 2012 is that Goldman Sax securitizes the songs of Bob Dylan. Not his songs, but performance royalties from Bob Dylan, Neil Diamond, and a catalog of other classic performers. The $300 million heavy bond is rated BBB-, so exactly of the border between investment grade and the junk are. Is it crazy

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Wie ist die Krise entstanden? Reasons of crysis

For German speakers, there is the vey funny, but real explanation about the reasons of crysis. It is pretty old, out of the year 2009, but is still entertaining.  I will translate it in English later. Wie entstehen „Risikoanleihen“

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What is securitization? Simple explanation

The ABS2DAY site is focused on the requirements of the issuers and the originators and requires the basic understanding of the technilogy. But if you want to know what is the securitization in general, there are several resources available in the Internet. Here ist the one of them: Please consider that Wayne Blanchard, the eHow Presenter, explans the securitization from the point of view of American market, which functions differently to the European one

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Mistakes in local regulations: Supervisory Formula Approach

Do you consider your local regulator as authority with supreme knowledge about securitization? Maybe you will change your opinion after checking the local implementation of CAD directive

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