Research and Restructuring
Research and Valuation
To date, the market has suffered from research based solely on either a book-value basis, with reports looking only at pass/fail on each test. Additionally, there is research using constant annual default rate assumptions. These reports provide little indication of valuation and no predictive power. Our methodology values each security within the portfolio and derives a default profile of each security.
Our advisory capabilities include supporting audit team evaluations as well as the internal needs of risk managers.
Restructuring
Restructuring CDO structures that have downgraded tranches requires teamwork with the control tranche, and may give rise to new capital, new securities as well as new management. Any such management will require experience with workout portfolios, a focus on returns for bondholders and the ability to attract and introduce new capital.