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An overwhelming majority of the loan-to-value ratios stated in the securities' prospectuses used appraisals, court documents say.
It has been more than four years since Mr. Johnson and his colleagues at Clayton Holdings started noting that disturbing numbers of mortgages did not meet the lending criteria promised to investors in prospectuses used to market the securities.
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Baseball Prospectus, using its complicated statistical formulas, predicts the Yankees and Mets won't make the playoffs this year.
As was standard for deals done at the time, the buyout shop loaded the company up with cheap debt — more than $1.1 billion, according to the prospectus — and used just $290 million of its own equity to take it home.
Asked what he was most proud of, he cited changes in the Nasdaq stock market, which stemmed from the discovery that market makers had violated antitrust laws by conspiring to keep customers' trading costs high, as well as his initiatives to force the issuers of prospectuses to use plain English and to promote investor education.
According to its prospectus, it uses equities and other financial products to capture the leveraged return.
The market has stressed transparency, made companies publish prospectuses in English and used American accounting standards.The securities-markets mess is what prompted Messrs Seifert and Breuer to call for a Euro-SEC or even for a more ambitious Euro-FSA.
These issues are often mentioned in the academic literature and in SR fund prospectuses where they are used as negative screening criteria (e.g., child labor (social), animal experiments (moral), extraction of raw materials (ecological)).
Their reports were often even more positive than the prospectus itself and were used to market the issue.
According to its prospectus, almost four thousand companies used the site in 2010, paying an average annual fee that the Business Insider article put at $8,000.
Money market funds would be exempt, as would funds using prospectuses exclusively for investors in tax-deferred products like 401(k) plans or variable annuities, because of their tax-advantaged status.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com