Structured products are pooled assets that have been sliced and diced into ever more smaller, more specialized pieces.
SEI Private Trust is part of SEI Investments, which manages $254 billion in mutual funds and pooled assets, usually through third-party asset managers, and processes $50 trillion in transactions a year.
Investigates the pricing of pooled assets, using Monte Carlo and other option pricing techniques, as well as various trading strategies used in these markets.
A senior tranche is a relatively safe investment, as long as the pooled assets are not likely to default all at once.
They pooled asset-backed securities, divided the pools into risk tranches, added a dose of leverage, and then repeated the process several times over.Meanwhile, increasing computer wizardry made it possible to create a dizzying array of derivative instruments, allowing borrowers and savers to unpack and trade all manner of financial risks.
"Transparency and valuation of the pooled art assets are the two key issues facing art securitization," said Cristina del Rivero, a Manhattan securities lawyer who follows the nascent market through her blog, Art Meets Law.
Commerzbank said that it would buy Eurohypo, Europe's biggest mortgage bank, and thus climb to second in the German league table, behind Deutsche Bank.Eurohypo was formed in 2002 from the pooled mortgage assets of Deutsche, Dresdner Bank (owned by Allianz, a big insurer) and Commerzbank.
Investment trusts (which still exist today) were set up because it was more efficient to bundle together clients' assets into pooled portfolios.
Unlike the current voluntary, individual-directed, commercial retirement accounts, everyone would have part-ownership in an appropriately pooled account with diversified assets.
