June 17th, 2005, 10:57 pm
I understood the main reasons for the fall-off in interest were 1.) the largely poor results of well-publicized examples, 2.) the lack of a strong case for institutions to hold these ABSs instead of all the other investments they could be making.One could say that the case for buying an MBS, or securitization of road tolls, etc. is a natural indexing to costs than many funds have a reason to be long. Most intellectual property ABSs can be priced only about as accurately as equity, and this makes them much more like equity than more stable "fixed income" instruments. I would think that more standardization, transparency, and easier trading by individuals is ultimately what might give this area a promising future...