as far as i know the bespoke tranches do not trade on a price determined in the market, but on a price determined by the dealers models. dealers know their models are not good, but as long as shit does not hit the fan they are quite happy with them (their risk controllers are too)modelling bespoke tranches therefore seems a bit redundant (model a dealers model?)...in the absence of good market determined prices how will you ever be able to verify that the new model works?
Last edited by Gmike2000
on August 19th, 2005, 10:00 pm, edited 1 time in total.