CDS of ABS: The Future is Now
Moderator:
Michael Swenson, Goldman Sachs
Panelists:
Zain Abdullah, Calyon
Josh Anderson, Pimco
Michael Knopf, MBIA
Nunzio Masone, Alladin Capital Management
Scott Eichel, Bear Stearns
Audience Makeup:
Are you:
A) Money Manager
B) Insurance Co.
C) Hedge Fund
D) Issuer/Originator
E) Broker/Dealer
F) Monoline
G) Other
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
Who have been the primary users of ABS CDS to
date?
How have the monolines been involved in this
market?
How have ABS CDS been used by CDO
managers?
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?
How are the ABX indices constructed?
Comment on the first week of trading activity on
the ABX indices.
What trades do we expect to occur with regard to
the ABX index?
What have been the primary issues the buy side
has had to address prior to participating in the
ABS CDS or ABX market?
What is your outlook on housing and subprime
spreads?
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
Audience Survey:
What is your outlook on subprime spreads for
2006?
A) spreads tighter
B) spreads flat
C) spreads wider
What is the outlook for structured products CDS?
Questions from the Audience