FINANCIAL TIMES Identifying a Conduit for European Contagion | Deutsche Bank could become a conduit for transferring European risk to the United States, and its North American subsidiary Taunus Corporation, with a leverage ratio of about 78 to 1, raises concerns, a former International Monetary Fund chief economist, Simon Johnson, writes in a column for Bloomberg News.
A major roadblock in the development of an off-the-shelf, small-caliber vascular graft is achieving rapid endothelialization of the conduit while minimizing the risk of thrombosis, intimal hyperplasia, and mechanical failure.
Because the paper is considered low risk, the conduit borrows money from, say, Fidelity at around 1.5%.
Now it might cost the banks a smidgen more: a couple million, or just the hassle of dealing with other banks, which probably also need partners to spread the risk of their conduits.
There may be a higher risk for early conduit interventions and death when aortic valve homografts are used in the RV-PA conduit.
There are also conduits, with revolving features, for transferring risk.
Subgroup analyses showed that patients with a conduit between the RV and the pulmonary arteries have different risk factors than those without a conduit.
He draws an analogy with the boom in structured finance, which saw banks distribute risk to specialist vehicles like conduits.
Herz notes that FASB's motivation for the change is proper disclosure of risk, not the end of conduits.
Even though another party has taken on that bad-loan risk, fees generated by the conduits are large compared with the expected losses.
