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Uncle Max

Uncle Max

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As the shakeout continues, one executive recruiter working with A.E. Feldman says valuation jobs and risk management opportunities will be opening up and professionals with experience in these areas will be hot commodities. "That's how the trouble started. Securities weren't valued correctly and risk wasn't measured correctly. Now, there will be a surge in demand for qualified valuation and risk managers because of the critical necessity to have these people. Consulting firms are also going to see increased demand for their services for secondary validation of existing models for valuation and risk measurement." A.E. Feldman's recruiter adds that candidates with traditional credit backgrounds will probably have the upper hand.
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Liquidity Meltdown to Boost Demand for Risk and Valuation Professionals - A.E. Feldman Blog
 
So true. In any bear or bull market, there are always people who can make money out of it. It's not a bad time to do credit derivatives or mortgage-related products after all. Here is an interesting article

Not everyone's getting hammered by the sub-prime market's fallout. Some bankers at Deutsche may even see bigger bonuses because of it.

 According to Bloomberg, the German bank could be on track to reap anything from $270 million to $540 million from the crisis, thanks to a strategy that allowed traders to sell sub-prime mortgage contracts that appreciated as the U.S. housing market fell.

It all seems to be the work of analyst Eugene Xu, who apparently foresaw the sub-prime meltdown two years ago. The main beneficiaries of his advice are likely to be (a) himself and (b) members of Deutsche's fixed income trading team. Bloomberg quotes Kinner Lakhani, an analyst at ABN AMRO in London, as saying traders led by Gregg Lippman, global head of asset backed securities trading and syndicate at Deutsche, sold index contracts based on Xu's advice.

Deutsche won't be alone in making hay out of sub-prime. The Financial Times quotes Gary Vaughan-Smith, former head of the Alternative Investment Group at ABN AMRO, as predicting, "hedge funds will win more than they lose (out of the crisis)." Hedge funds Hayman Capital and Corriente Advisors, plus San Francisco-based Passport Capital, are all said to have made money so far.
 
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