The year 2010 will be remembered as one of the years with more litigation in the courts in matters relating to: Madoff, bonds issued by Lehman, swap agreements, hedge funds that have not returned the cash, etc.
To have any chance of success at trial is required to forward a figure sophisticated financialknowledge to judges and lawyers affordable and easy to understand: The legal expert.
In the field of derivatives, there are very few legal experts with real experience in the field of structuring and financial engineering for a simple reason, if you have work experience in structuring and JP Morgan to earn 10 times more than being a humble expert or consultant.
Thus, there are many cases signing expert valuations that come from the audit (KPMG, Deloitte, etc.) Theorists and professors of the university world.
The former give an accounting approach to a problem that has nothing to do with accounting but with finances. The valuation of structured products is carried out with very sophisticated models of financial engineering that have earned at least half of recent Nobel laureates in economics. Models are to be understood in perspective need mathematical knowledge engineering or PhD level in mathematics.
On the other hand the theoretical academics, while giving a good image of neutrality before the judges, are that: theory, practice and know the market, so that their reports are usually strings of citations to researchers without getting wet in going to climax or catastrophe reports referring to anyone who works in the market would take seriously.
It is therefore required to play this role a hybrid between investment banking and teaching the twofold: the training and technical subject matter. In the same way it would be good judges of the commercial form in this area that many disputes will bring to theaters in the coming years.
One of the best consultants in finance in Spain is AFI – International financial analyst, but rarely take a stand against financial institutions because they are your best customers.
Another of the best consultants specializing in financial engineering is NetValue Financial Advisors, which specializes in complex products (exotic) and valuations of structured products, derivatives, swap contracts, etc.
Finally Investment insurance is more focused on the group of insurance companies and the assessment of their financial assets, which often have long maturities (coupons zero cancellable, etc), rather than the more exotic side of products.
It would be advisable that participants in this network is responsible for ensuring legal certainty in this exciting sector “culture hoisted” more and more with the concepts of swaps, structured products, SPVS, etc.
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