Comments on: Read Goldman Sachs’ Abacus pitch book

By: DougLeMoine

DougLeMoine — Wed, 23 Feb 2011 00:42:41 +0000

Gives new meaning to “Death by Powerpoint”

By: jmowreader

jmowreader — Mon, 13 Sep 2010 05:47:56 +0000

The cover of this flipbook tells the prospective investor all he needs to know. Any derivatives-savvy gambler knows a Synthetic CDO is exactly one thing: tranched Credit Default Swaps. A CDS is by its nature a contrarian position–you buy one because you think the underlying derivative is going to go into default; the instrument pays you nothing if the underlying doesn’t default. Also remember: the Abacus Synthetic CDO was tranched Naked CDS–the kind you buy on derivatives you don’t personally own, but think are going to default anyway.

So…Goldman, Sachs was betting the mortgages at the bottom of the derivative stack were going to default (which they did, and at such a rate the counterparties betting against the naked CDS weren’t able to make them good), and people are upset because GS was right? Well, of course they are; everyone knows the stock market only goes up!

By: TraderRob

TraderRob — Mon, 03 May 2010 06:01:31 +0000

Goldman has been slashed as an evil organization due to the SEC lawsuit, but perhaps a better understanding of the ABACUS deal will help explain what GS was and wasn’t responsible for providing to investors.

Have a look at the unbiased slice of the story at:

http://www.diamondslice.com/2010/04/the- abcs-of-goldmans-abacus/

By: BrianJDonovan

BrianJDonovan — Sun, 25 Apr 2010 18:31:36 +0000

For a better understanding of subprime mortgage-backed credit derivatives, visit:

http://donovanlawgroup.wordpress.com/201 0/02/19/how-credit-derivatives-brought-t he-u-s-economy-to-the-brink-of-a-second- great-depression/

By: ABSskeptic

ABSskeptic — Sat, 24 Apr 2010 00:43:01 +0000

1. as the manager wouldn’t ACA have to provide reporting to all investors including the equity investors and shouldn’t it have noticed that Paulson weren’t anywhere in the capital structure
2. where was the Trustee in this deal – in ABs doesn’t the trustee have a fiduciary obligation to noteholders…why are trustees not being scrutinised like all the other parties