Increased Volatility and Derivatives
Financial markets have been marked by periods of high volatility and for increased correlation between markets. Combined with low returns in many markets, investors are driven to consider new markets and/or new securities in order to boost their returns. The most recent example is obviously the explosion in the real estate market largely driven by the development of new instruments such as mortgage backed securities (MBS) and Collateralized debt obligations (CDO).
EZRA has been extremely active in research and consulting (including securities litigation) in the real estate market and its structured products as well as international emerging markets and currency markets. Most recently, our research activities have taken us to the Cryptocurrency market, a growing and controversial market.
Examples of Projects
MBS/CDO ZASK has worked on a number of projects involving mortgage backed structured products. These project included valuation of complex structured product portfolios; managing risk in MBS portfolios; evaluating the credit and financial structure of MBS/CDO; the underlying characteristics of mortgage holders in a structure; and the risk of structured products to investors.
Volkswagen Equity Options Transactions: EZRA was hired to research VW's use of equity options in the course of its attempt to purchase Porsche. We conducted a highly confidential report that described and analyze the transaction and gave our client recommendations on how to counter these options.