82,891
edits
Asset-backed securities field guide: Difference between revisions
Asset-backed securities field guide (view source)
Revision as of 17:48, 23 September 2023
, 23 September 2023no edit summary
Amwelladmin (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 7: | Line 7: | ||
Electronic booking systems made it easier to manage complicated cashflows, but to that extent, technology only sped the derivatives market up: it did not ''enable'' anything you could not have done with paper and pencil. Likewise, dematerialised [[clearing]] arrived in securities markets in the late 1970s, but had remarkably little impact on how deals were documented or the market infrastructure felt about them. It still doesn’t: indeed, bond market infrastructure is ''still'' predicated on the uneasy fear that [[clearing]] might be just a fever dream, or is liable to be rendered permanently inoperable by some kind of electromagnetic pulse whereupon the world will have to return to its old analogue security-printed ways, festooned with paying agents, [[coupon]]s, [[talon]]s, [[Belgian dentist]]s, and Balearic benders.<ref>For those reading who may be of that belief, here is the thing: if such a catastrophe were to befall the securities market, and its ''worst'' consequence were the permanent failure of the [[clearing system]]s, there would not be the printing capacity on the planet to produce the necessary definitive notes, and that would be true even if the proprietors of said printing businesses weren’t spending their waking hours scavenging the post-apocalyptic streets for uncontaminated dog meat.</ref> | Electronic booking systems made it easier to manage complicated cashflows, but to that extent, technology only sped the derivatives market up: it did not ''enable'' anything you could not have done with paper and pencil. Likewise, dematerialised [[clearing]] arrived in securities markets in the late 1970s, but had remarkably little impact on how deals were documented or the market infrastructure felt about them. It still doesn’t: indeed, bond market infrastructure is ''still'' predicated on the uneasy fear that [[clearing]] might be just a fever dream, or is liable to be rendered permanently inoperable by some kind of electromagnetic pulse whereupon the world will have to return to its old analogue security-printed ways, festooned with paying agents, [[coupon]]s, [[talon]]s, [[Belgian dentist]]s, and Balearic benders.<ref>For those reading who may be of that belief, here is the thing: if such a catastrophe were to befall the securities market, and its ''worst'' consequence were the permanent failure of the [[clearing system]]s, there would not be the printing capacity on the planet to produce the necessary definitive notes, and that would be true even if the proprietors of said printing businesses weren’t spending their waking hours scavenging the post-apocalyptic streets for uncontaminated dog meat.</ref> | ||
Therefore, the [[JC]]’s | Lawyers are, after all, good at studiously ignoring progress when it promises to put them out of work, and just as adept at embracing any progress that promises to create more of it. | ||
Therefore, the [[JC]]’s unfashionable view: [[Sine qua non|''sine qua non'']] of financial innovation in the 1980s was the ''[[Microsoft Word|word processor]]''. | |||
Once you could type things on a computer, it just became easier to type out ''more'' things; to redraft, mash up, [[Iteration|iterate]], duplicate and propagate. You didn’t have to re-type every page from scratch. You didn’t need to faff around with carbon paper. Once you could send files ''electronically'' — you know, [[fax]] — everything became easier still. It was bummer for sub-60 bike couriers, but hey: Deliveroo. | Once you could type things on a computer, it just became easier to type out ''more'' things; to redraft, mash up, [[Iteration|iterate]], duplicate and propagate. You didn’t have to re-type every page from scratch. You didn’t need to faff around with carbon paper. Once you could send files ''electronically'' — you know, [[fax]] — everything became easier still. It was bummer for sub-60 bike couriers, but hey: Deliveroo. | ||
| Line 22: | Line 23: | ||
Private is basically ''bilateral''; symbolised in financial circles by the ''[[OTC|counter]]''. Public is ''unilateral'', can be held by any number of unconnected investors with no common interest; symbolised by the ''[[exchange]]''. | Private is basically ''bilateral''; symbolised in financial circles by the ''[[OTC|counter]]''. Public is ''unilateral'', can be held by any number of unconnected investors with no common interest; symbolised by the ''[[exchange]]''. | ||
Private is an ''[[OTC]] contract'' and the public a ''traded [[instrument]]''. | Private is an ''[[OTC]] contract'' and the public a ''traded [[Financial instrument|instrument]]''. | ||
==== Private: [[Over-the-counter|over-the-counter]] ==== | ==== Private: [[Over-the-counter|over-the-counter]] ==== | ||