Valuing distressed assets

clock

Standard & Poor's Peter Jones looks at the difficulties of valuing asset-backed securities.

Asset-backed securities (ABS) comprise the asset classes most widely blamed for the onset of the 2007-09 financial crisis. Indeed, the beginning of the crisis is often blamed on the flood of redemptions from ABS funds from banks such as Bear Stearns, caused by a loss of confidence in the asset class as defaults in the underlying US sub-prime mortgages spiked. In August 2007, French investment bank BNP Paribas reported it had no way of fairly valuing its holdings in US sub-prime mortgage securitisations, triggering the hiatus in the inter-bank money markets as banks lost faith in each oth...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

abrdn relaunches two fixed income portfolios as part of ongoing consolidation

abrdn relaunches two fixed income portfolios as part of ongoing consolidation

Gives ii investors exclusive access to new fund

Eve Maddock-Jones
clock 15 May 2024 • 4 min read
UBS makes AT1 bonds worth $5bn available for equity conversion

UBS makes AT1 bonds worth $5bn available for equity conversion

Four outstanding AT1 issuances

Valeria Martinez
clock 14 May 2024 • 1 min read
Edmond de Rothschild's Julien de Saussure: AT1's post (Credit Suisse) mortem

Edmond de Rothschild's Julien de Saussure: AT1's post (Credit Suisse) mortem

A year on from the saga

Julien de Saussure
clock 03 May 2024 • 4 min read
Trustpilot