NO ONE SAW it coming. And like machine-gun bearing mobsters jumping out of a birthday cake, the liquidity trap in which the securitization market has become embroiled was a very nasty surprise. Indeed, it is hard to overstate the sense of shock that this market is still reeling from. Investment banking is not known as a profession lost for words, but many usually garrulous individuals are still struggling to describe the experience. "It is always the thing that you least expect that trips you up," says one. "Who would have ever thought it would be the SIVs? They sit so high in the capital structure that nobody worried about them – it seems natural that all the risk in the capital structure is at the bottom not the top – so that is where people focused."
And by the time it became apparent that there was a serious buyers’ strike...
You must be a subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
- 12 months access in print and online - on euromoney.com, read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 1996
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe