We have studied and provided testimony on a wide variety of structures including leveraged leases, cross-border leases, privatizations, and asset-backed securitizations. We have explored the roles that lenders, borrowers, and a variety of other agents play in these esoteric structures, and the allocation and pricing of risk and returns to the various investors and securities tranches. We bring a unique vantage point to this area derived from work at the Federal Reserve, academia, think tanks and the detailed examination of voluminous transactional documents in tax litigation.
Leveraged Lease Analysis
Cross-border leasing transactions are complicated structured finance transactions that can provide financing and reallocate economic risk among the various parties. Testifying for the Department of Justice, Michael Cragg provided an economic analysis of the risks and rewards to the various parties and the implications for their economic behavior. The Court ruled in favor of the Government. …read more
Long-Term Capital Holdings, et al. v. United States of America
At one time, Long-Term Capital was the largest hedge fund in history with more than $100 billion in assets. Its partners included legendary bond trader John Meriwether, and Nobel Prize-winning economists Robert Merton and Myron Scholes. Following Long-Term’s demise, its partners sued the U.S. government over a substantial tax dispute. Cambridge Finance Partners was retained by the U.S. Department of Justice to provide economics and finance consulting services in this highly publicized matter. CFP assembled a team of experts, including Nobel Prize winner Joseph Stiglitz, and assisted the government attorneys with all aspects of the case. Following a four and one-half week trial, the Court subsequently ruled in favor of the United States. [pdf] …read more
AIG et al. v Sears
Sears was one of the first companies to securitize its credit card receivables. In this dispute with its bond holders, Cambridge Finance Partners was asked to analyze the pricing and market response of all of Sears’ bonds including general obligation bonds, those secured by credit card receivables and those involving a provision that allowed Sears to call its bonds in the event of a large decline in receivables. A central component to this study was …read more