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Open Graph

title

Synthetic Assets

description

A deconstructionist's view of financial markets

image

site name

Synthetic Assets

author

updated

2026-02-23 03:26:32

raw text

Synthetic Assets – A deconstructionist's view of financial markets Skip to content Synthetic Assets A deconstructionist's view of financial markets Late cycle financial innovation: Are private credit funds the new MBS CDOs? The FT produced an interactive graphic last month exploring the many ways that banks are providing funding to the world of private equity, and asked the question: “could the private equity industry pose a risk to the wider financial system?” FT interactive graphic In my view this question should be placed in the context of what we learned from the Great Financial Crisis. First, one should remember that from 2004-08 just as US mortgages were being used as the raw material for mortgage-backed securities (MBS) and for collateralized debt obligations (CDOs) made up of MBS tranches (MBS CDO), the leveraged loans that support private equity deals were being bundled into collateralized loan obligations (CLOs). In the denouement of the crisis, however,...

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