16.1.08

Can Analysts Be Trusted?!

Much like the very first analyst / therapist, aka analrapist, Dr. Tobias Funke cannot be trusted maybe financial analysts should be treated with a similar skepticism.

Today Moody's put out a press release on SIVs and failed to remove some of the draft editorial bits. Of course this isn't new, companies often mistakenly put out unfinished press releases in error. What is interesting in this case is that the report's unredacted version is much more to the point. The version that was supposed to go out seems more sugarcoated and potentially a little misleading.

Indeed, all (The entire SIV business model is) SIVs are affected by the recent price decline of fixed income assets and all SIV managers have been actively adapting the structure of their vehicles to this stressed environment, (now widely acknowledged to be unsustainable without restructuring)” says Paul Mazataud, Group Managing Director of Moody’s International Derivatives team and co-author of these reports.
-- Bolded text in parentheses shows what was supposed to be deleted before the final draft was disseminated.

Maybe that glass wall is a little too transparent?! Bricks and mortar anyone?!

More from the Financial Times blog.

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