In 2011, a major global bank brought suit against a large hedge fund in connection with the bank’s financial sponsorship of a collateralized debt obligation securitization. The bank alleged that the hedge fund misled it into restructuring the transaction and used fraudulent conveyances to transfer transaction-related assets away so that the bank could not claim them.
SFC Associates examined the actions of the hedge fund, analyzed the hedge fund’s policies and procedures with respect to investment decisions and operations, and provide expert benchmarking of hedge fund policies and procedures. SFC Associates also consulted legal counsel on the trading market of collateralized debt obligations by analyzing trade spreads, volumes, and issuances. SFC Associates experts provided deposition and trial testimony.