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CDS of ABS: The Future is Now
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Moderator:
Michael Swenson, Goldman Sachs
Panelists:
Zain Abdullah, Calyon
Josh Anderson, Pimco
Michael Knopf, MBIA
Nunzio Masone, Alladin Capital Management
Scott Eichel, Bear Stearns
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Audience Makeup:
Are you:
A) Money Manager
B) Insurance Co.
C) Hedge Fund
D) Issuer/Originator
E) Broker/Dealer
F) Monoline
G) Other
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Audience Makeup:
My current involvement in CDS could be described as
follows:
a. Have already transacted in ABS CDS
b. Have not transacted in ABS CDS, but am considering it
c. Will probably not transact in ABS CDS
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Who have been the primary users of ABS CDS to
date?
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How have the monolines been involved in this
market?
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How have ABS CDS been used by CDO
managers?
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What is the cash-CDS basis and what has it been
doing?
Have CDS spreads lead cash spreads or vice
versa?
How have market technicals been impacted by
the growth of this market?
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How are the ABX indices constructed?
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Comment on the first week of trading activity on
the ABX indices.
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What trades do we expect to occur with regard to
the ABX index?
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What have been the primary issues the buy side
has had to address prior to participating in the
ABS CDS or ABX market?
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What is your outlook on housing and subprime
spreads?
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Audience Survey:
What is your outlook on housing for 2006?
A) Prices up 10% or more
B) Prices up 0 to 10%
C) Prices Flat
D) Prices down 0 to 10%
E) Prices down 10% or more
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Audience Survey:
What is your outlook on subprime spreads for
2006?
A) spreads tighter
B) spreads flat
C) spreads wider
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What is the outlook for structured products CDS?
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Questions from the Audience