Fabry 1973

David Einhorn Comments on the Credit Market and His Portfolio

Mike, I'am writing from Italy... I tried to be an expect in securitization and I devoted my professional life to this... despite this, I agree to half of the statements written by david about securitization... it's really a bad practice, but not by itself... it's a bad practice in a highly leveraged world... and we are in this situation now (due to the hard lending, SIV, CDO etc etc etc).
I think that, as many simple finance books indicate, a reasonable amount of leverage is efficient and needed, so, sorry david, but the capital markets has to deleverage for sure, but there is a level where also securitization is useful. and, on rating agencies, I hope for a creaction of a super board of experts (super partes) that will be able to fine rating agencies for bad practice... but lobbies are too strong.... I would check among rating agencies shareholders first...
so, have a good day
ciao
Fabrizio
[e-mail]...

David Einhorn Comments on the Credit Market and His Portfolio

Mike, I'am writing from Italy... I tried to be an expect in securitization and I devoted my professional life to this... despite this, I agree to half of the statements written by david about securitization... it's really a bad practice, but not by itself... it's a bad practice in a highly leveraged world... and we are in this situation now (due to the hard lending, SIV, CDO etc etc etc).
I think that, as many simple finance books indicate, a reasonable amount of leverage is efficient and needed, so, sorry david, but the capital markets has to deleverage for sure, but there is a level where also securitization is useful. and, on rating agencies, I hope for a creaction of a super board of experts (super partes) that will be able to fine rating agencies for bad practice... but lobbies are too strong.... I would check among rating agencies shareholders first...
so, have a good day
ciao
Fabrizio
[e-mail]...

David Einhorn Comments on the Credit Market and His Portfolio

Mike, I'am writing from Italy... I tried to be an expect in securitization and I devoted my professional life to this... despite this, I agree to half of the statements written by david about securitization... it's really a bad practice, but not by itself... it's a bad practice in a highly leveraged world... and we are in this situation now (due to the hard lending, SIV, CDO etc etc etc).
I think that, as many simple finance books indicate, a reasonable amount of leverage is efficient and needed, so, sorry david, but the capital markets has to deleverage for sure, but there is a level where also securitization is useful. and, on rating agencies, I hope for a creaction of a super board of experts (super partes) that will be able to fine rating agencies for bad practice... but lobbies are too strong.... I would check among rating agencies shareholders first...
so, have a good day
ciao
Fabrizio
[e-mail]...