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Discredit derivatives: Difference between revisions
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To be sure, the funds were largely right about that — no-one ''does'' care about that sort of thing in the City — but European regulators, post-Brexit, decided ''they'' did, and began holding [[hedge fund]]s to account for false advertising if they claimed the sanctimony of [[ESG]] on paper without observing it in practice. Especially British ones. | To be sure, the funds were largely right about that — no-one ''does'' care about that sort of thing in the City — but European regulators, post-Brexit, decided ''they'' did, and began holding [[hedge fund]]s to account for false advertising if they claimed the sanctimony of [[ESG]] on paper without observing it in practice. Especially British ones. | ||
===Early years: single-name [[ | ===Early years: single-name [[turpitude put]]s=== | ||
Barkley’s idea was simple: if it was okay to extract the crappy credit profile from a [[CDO squared|portfolio]] of [[mortgage|mortgages]] off and lay ''that'' off on someone with “sufficiently deep market expertise and advanced models to bear the risk indefinitely”<ref>Yes, I know what you are thinking: a sleepy Landesbanken from Lower Saxony would be ''exactly'' such a someone, right?</ref> why not do the same thing with the unwanted ignominy of outrageous investments? | Barkley’s idea was simple: if it was okay to extract the crappy credit profile from a [[CDO squared|portfolio]] of [[mortgage|mortgages]] off and lay ''that'' off on someone with “sufficiently deep market expertise and advanced models to bear the risk indefinitely”<ref>Yes, I know what you are thinking: a sleepy Landesbanken from Lower Saxony would be ''exactly'' such a someone, right?</ref> why not do the same thing with the unwanted ignominy of outrageous investments? | ||