Risk Characteristics of Swaps

Analysis Group supported our academic affiliate Professor Peter Tufano, in his testimony in a London case involving structured financial instruments. Professor Tufano's testimony focused on the extent of variety and innovation in financing, the use of commodity-linked financing, the key elements of structured finance (in particular, the use of Special Purpose Entities, or SPEs), participants in the structured finance market, and illustrations of the use of structured finance by firms and governments. Professor Tufano also analyzed the risk characteristics of the derivatives sold by our client, a leading investment bank. In a 228-page opinion, the judge endorsed the analysis of Professor Tufano and ruled on behalf of our client.