Gerald

Who's Failing Us With Bad Information?

The way forward is to resolve the valuation issues surrounding all the CDOs and other ultra complex fixed income derivatives. It is now apparent that these investments are more equity in nature rather than fixed income. If the credit ratings for these instruments were nullified, then equity valuation techniques could quickly be applied to value these instruments and their values determined accordingly. This will naturely involve some discomfort but then chapter on these difficult products could be closed sooner rather than later.