question on the future of structured credit

Discussion in 'Wall St. News' started by mind, Sep 22, 2008.

  1. mind


    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.