CDOs and The Subprime Market Speaker
Overview:The subprime impact has reverberated throughout the financial industry CDOs backed by significant mezzanine subprime collateral may experience rating downgrades and possibly losses in the coming months and years.
The Knowledge Congress has assembled a panel of distinguished experts to help finance professionals understand the subprime impact on the market. The panel will present their findings in a two-hour teleconference.
<strong id="ep-name-of-speaker">Phoebe J. Moreo, Partner, CDO Team,</strong>
<em id="ep-speaker-firm">DeLoitte and Touche</em>
- How did we get here? What generated the panic? Regulatory, legal, structural and economic drivers
- Why did it spread so far beyond sub prime? (e.g. why are commercial mortgages being priced as they were during RTC days?)
- Are there CDOs in our future? or only CLOs? will they continue to have a reinvestment period?
- What will it take to bring investors back to the market?
- What impact does FASB's (and IFRS's) push to have financial instruments marked to market have on cash flow structured vehicles like CDOs? Also, what is impact of the emergence of mark to market investors such as hedge funds on CDO structures?
- What do we see in 2008 (a) collateral origination, prepayments, losses for corporate loans, RMBS, CMBS; b) issuance levels for Agency, RMBS, CMBS, ABS CDOs, CLOs, synthetic CDOs; c) what are the indices are telling us?
-Will rating agencies be forced to add a script or designation for CDOs with reinvestment periods to reflect that they have reinvestment risk that may not have been taken into account in their credit analysis? if that occurs, what impact will it have on the potential investor base?
- What are the tax consequences of holding CDO equity or a below investment grade bond that is not receiving cash flow?
<strong id="ep-name-of-speaker">Paul M. Colonna, President & Chief Investment Officer, Fixed Income,</strong>
<em id="ep-speaker-firm">GE Asset Management</em>
**Segment details to be announced shortly..
<strong id="ep-name-of-speaker">Ed O'Connell, Partner,</strong>
<em id="ep-speaker-firm">Jones Day</em>
**Segment details to be announced shortly..
<strong id="ep-name-of-speaker">Kedran Garrison Panageas, CDO Analyst,</strong>
- Housing downturn has a long way to go. Prices need to drop another 20-30% to clear inventory.
- We are in the midst of a massive deleveraging process that will limit securitization activity and ultimately require a broad-based recapitalization (banks, monolines, conduits/SIVs).
- A key focus is the extent of mortgage-related losses, and who owns them. We break down our subprime and CDO related loss estimates.
- Bank losses will continue to escalate, impacting capitalization and lending capacity, and accelerating the credit crunch. Rationed credit will go to the Corporate sector (not Consumer). However, deleveraging will hit even higher quality assets such as CLOs, and we project lower signficantly lower volume in 2008.
- SF CDO noise will continue, as we see events of default, deal unwinds (at the option of the controlling class), and legal wrangles.
<strong id="ep-name-of-speaker">Vishwanath Tirupattur, Executive Director of Research,</strong>
<em id="ep-speaker-firm">Morgan Stanley</em>
- What is the outlook on US housing from property derivatives markets?
- What next for ABS CDOs? Where is ABS CDO performance headed?
- What are the opportunities in the distressed ABS CDO market?
- Key considerations in the valuation of ABS CDO tranches as distressed assets?
- What are the issues in the development of an active market for ABS CDOs as distressed assets?
Who Should Attend:
Underwriters, Asset Managers, Trustees and Collateral Administrators, Accountants, Investors, Hedge Fund Managers, Asset Managers, Underwriters, Traders, Analysts, Collateral Managers, Attorneys, Rating Agencies, Bond Insurers
Paul leads the Fixed Income Business Team and oversees more than $120B in fixed income assets. Paul is a Trustee of the GE Pension Trust and also serves on the GEAM Asset Allocation Policy Committee. Most recently he was Senior Vice President, Head of Total Return Portfolio Management. Paul chaired the Fixed Income Asset Allocation Committee and had oversight over Structured Products, Leveraged Finance, Investment Grade Credit and Municipal debt. He also served as Portfolio Manager specializing in Structured Products. Prior to joining GE, he was a Senior Portfolio Manager at Federal Home Loan Mortgage Corp where he headed the $60B CMO trading desk and oversaw all mortgage derivative trading. Before Freddie Mac, Paul worked for First Virginia Mortgage Company. Paul received his MBA from the University of Maryland and his BS in Business Administration from Villanova University. Paul is the holder of the Chartered Financial Analyst designation.
Paul leads the Fixed Income Business Team and oversees more than $120B in fixed income assets. Paul is a Trustee …
**Bio to be announced soon.
**Bio to be announced soon.
Ed O'Connell has an extensive practice in the structured finance and derivatives area, concentrating particularly in collateralized debt obligations, both cash and synthetic. He is also experienced in the representation of issuers, underwriters, services, investors, credit enhancers, trustees, and rating agencies in connection with asset-backed and mortgage-backed securities.
Ed is a frequent speaker and writer on the subject of structured finance. Recent articles include "ABCs of Synthetics ABS," Journal of Structured Finance (Spring 2006); "Developments in Credit Card Securitization," The Review of Banking and Financial Services (August 2006); "Tracking the Growing Popularity of CDOs of ABS," Capital Markets (June/July 2005); and "Understanding ISDA's Credit Derivative Rules" International Financial Law Review (August 2003).
Ed O'Connell has an extensive practice in the structured finance and derivatives area, concentrating particularly in collateralized debt obligations, both …
Kedran Panageas is a vice-president at JP Morgan Securities in CDO Research. Kedran has been with JP Morgan since 2005 after working at State Street Research & Management in their CDO investments and issuance group from 2001-2004. Kedran is responsible for an array of regular research publications, including the Global CDO Weekly Market Snapshot and CDO Monitor, and is part of a global team currently ranked #1 in the North America Institutional Investor poll and #1 in the European Institutional Investor poll. Kedran holds a Ph.D. from MIT in Economics as well as a BS in mathematical economics from Wake Forest University.
Kedran Panageas is a vice-president at JP Morgan Securities in CDO Research. Kedran has been with JP Morgan since 2005 …
Vishwanath (Vishy) Tirupattur is an Executive Director in the Structured Credit Strategy group at Morgan Stanley. Prior to joining Morgan Stanley in September 2004, he had portfolio management / risk management responsibilities at The Chubb Corporation, American International Group (AIG) and The Lincoln National Corporation, managing interest rate, equity and credit derivatives positions. Vishy has also been a post-doctoral associate at the University of Illinois and holds a master's degree from Virginia Tech and doctoral degree from the University of Illinois at Urbana-Champaign.
Vishwanath (Vishy) Tirupattur is an Executive Director in the Structured Credit Strategy group at Morgan Stanley. Prior to joining Morgan …
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Method of Presentation:
On-demand Webcast (CLE)
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