Wrongly ratted CPDOs offered in US
In one of the least surprising developments in recent financial history, Christopher “Flaccid” Cox, the mutual fund fraud enabler currently masquerading as the chairman of the US Securities and Exchange Commission, is already in on the fast-developing cover-up of the Moody’s misratting scandal.
Cox said earlier that because the CPDOs ratings were given out by Moody's in Europe the SEC may lack jurisdiction.
SEC Should Investigate Moody's, Consider Fines, Schumer Says
by Jesse Westbrook
Bloomberg May 21 2008
Regrettably for Mr Cox and his endless quest to ensure that nobody turns over any rocks that may conceal reptilian threats to market confidence, NakedShorts’ correspondent David S. Products has produced an email from Oct. 2006 showing that at least one of the deals was, in fact, offered in the US. Which would, to the extent that Cox has not already gutted his agency’s alleged mission, bring the matter under SEC jurisdiction.
Subject: ABN AMRO - SURF 2006-1 CPDO: AAA Rated Asset at Libor + 200 Bps
It was nice speaking with you and [Redacted] this afternoon. As promised, I will follow up with you regarding [Redacted]’s visit later this month once we know his schedule.
In the meantime, as mentioned, ABN AMRO is pleased to present the SURF 2006-1 CPDO, the first fully-rated Constant Proportion Debt Obligation in the US. I believe you will find this opportunity very interesting. Key features include:
- AAA rating by Standard & Poor’s and Moodys on both the timely payment of interest and the ultimate payment of principal.
- Coupon of L + 200 bps...
- Leveraged credit exposure to an investment grade portfolio of two on-the-run credit indexes (the reference pool is 50% Dow Jones CDX.IG and 50% iTraxx Europe).
- Transparent structure that combines features of CPPI and CDO transactions.
- Daily two-way pricing provided by ABN AMRO via Bloomberg.
For your review, I am attaching the following documents:
The SURF structure pitchbookA recent article from The Financial Times
I look forward to following up with you later this week. In the meantime, please feel free to call me with any questions or comments...
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