Mortgage Backed Securities and Structured Products

SFC Associates has extensive experience in cases involving mortgage backed securities, credit crisis issues, suitability issues, rating agencies and valuation of securities.

Our experience includes:

  • Valuation of portfolios and securities, and estimation of losses related to mortgage backed securities portfolios
  • Evaluation of OAS modeling techniques used to value a portfolio of MBS held by a bank
  • Analysis and valuation of portfolios containing ABS, MBS, CDO, CDS, ARS, and other structured products
Case Study: Plaintiffs v. Asset Manager

Madoff-Related Litigation, Ponzi Schemes and Large Trading Losses

SFC Associates has industry experience and comprehensive expertise in Madoff-related litigation, Ponzi schemes and large trading and other losses.

Our experience includes:

  • Petters, Rothstein and Madoff related litigation
  • Examination of industry standard practices by which feeder funds perform due diligence on underlying fund managers, including “red flags”
  • Analysis of due diligence responsibilities of financial institutions in connection with alleged frauds and Ponzi schemes
  • Analysis of large trading losses involving complex derivatives, breach of risk management guidelines
  • Consulting to Trustees for Lehman Brothers and the Bear Stears hedge funds on risk management and causes of large losses

Market Manipulation:  LIBOR, ISDAfix, Foreign Exchange and Insider Trading

SFC Associates has significant consulting experience in matters involving complex securities, derivatives, and financial markets, combined with unique hands-on experience trading in these markets.

Our experience includes:

  • Review of over-the-counter (OTC) foreign exchange trading and profit and loss analysis
  • Insider trading, market manipulation, and abusive short selling analysis
  • Extensive experience in foreign exchange and LIBOR litigation

Valuation and Damages Calculations

SFC Associates has significant research, analysis, and testifying experience in disputes involving the valuation of hedge funds, portfolios, complex assets and securities, and public and private corporations.

Our experience includes:

  • Damages calculations in cases involving investment management, redemption restrictions,
  • Preparation of expert reports valuing hedge funds, and providing expert testimony in court
  • Valuation and pricing of complex and illiquid structured investments
  • Valuation of securities related to fund liquidations
  • Valuation of hedge fund companies utilizing Monte Carlo simulation, income approach (discounted cash flow), and market approach (comparable funds and transactions)