Credit Markets round-up: Overheard at the Global ABS conference in Cannes
"Redemptions at par"
A delegate’s reply when asked what will be hot in the ABS market this year
"A terrible idea until you think of the alternatives"
No, not Churchill on democracy – a delegate on the rating agencies
"If you need an SF on the rating to tell you that the risk is different then you should not be buying in the first place"
The idea of rating a different notation was not a popular one
"This animal has a lot of feet – there are at least half a dozen more shoes to drop"
The crisis isn’t over according to one delegate
"If I hear the words "print that trade" one more time at this conference I am going to lose my provençale dinner"
A delegate suggests that the market needs to be rather more realistic with regard to investor appetite
"We have spent tens of thousands of dollars on proprietary systems just to tell us how far off the rating agencies are in their analysis"
A delegate firmly believes in the benefits of doing your own credit work
"It is not the right time to back up the truck but you should be looking at it sniper-style"
A distressed debt expert advises investors on ABS opportunities...
"We have lawyers ripping apart prospectuses looking for a couple of sentences that will change the valuation from 60c to 20c"
...and tips on just how to go about it