Deutsche and Goldman neck and neck
Debt poll of polls: Customer votes reveal the new big three
WHAT DOES IT take to be successful in the fast-developing and highly profitable world of structured credit?
Unlike in more mature areas of the capital markets such as equities and FX, there’s no established model that banks adhere to. How can there be, when this still new market changes almost every day.
For people running structured credit businesses, it must be a headrush and a headache at one and the same time.
This is a market that depends on the exotic and the bespoke, but where many participants say it is only through scale that you can truly be profitable.
It’s a world where relatively new products, such as asset-backed credit derivatives, are almost already commoditized, one where almost any type of underlying asset that has stable cashflows can provide origination and structuring opportunities.
It’s a market which challenges accepted wisdoms: illiquid can be good, irregular is almost preferred. Understanding is crucial – don’t run a correlation of correlation book unless you’re exactly sure of the risks and rewards involved.