Those that claim there is nothing new in structured finance might have a point. The much-hyped credit derivative product companies (CDPCs) now queuing up to launch look very like classic derivative guarantee companies of old, and indeed are basically synthetic SIVs. Primus Financial Products and Athilon Capital Corp, the only two such firms in the market so far, sell credit protection on investment-grade reference obligations and highly rated synthetic CDO tranches respectively in an unfunded swap format.
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