Financial jungle

picked this article from a magazine....

Before i go into the creative terminologies let me give you a brief of its real application.

The markets have always been fascinated by animals. Merill Lynch- now taken over by Bank of America floated TIGRs(Treasury Investors Growth Receipts). Similiarly, Lehman Brothers, which went bankrupt and had to be shut down floated LIONs(Lehman Investment Opportunity Notes). not to be left behind Salomon Brothers invented CATS(Certificates of Accrual on Treasury Receipts).

Given the upheaval in the world markets(call it calamity/ catastrophe) this might be the right time to launch some more "animal" bonds to revive investor interest. Here are some mythical beast.

DOG(Dump On Government bonds) - these are bonds issued by all kinds of special investment vehicles which may or may not have any underlying assets. In case the issuer stops paying interest, the govt. will be obliged to buy them back.

VIPER(Voucher In Place Exceptions Regretted) - these will be a genre in the manner of "catastrophe bonds" but issued for insuring disaster in the financial sector instead of natural mishaps. these bonds will help insurance companies provide cover against the next gen. of banks which issue exotic derivaties, going kaput.

CHEETAH(Childless,Earning-Exempted,Totally Assetless Homes) you have heard of NINJA-No Income No Job Asset- loans provided to sub prime borrowers. when the next spell of easy money rolls around(and you can bet your shirt that it will-given the kind of liquidity being pumped into the market by world's central banks) the same kind of loan can be rolled off the assembly line, albeit with a different name:Childless,Earning-Exempted,Totally Assetless Homes.

Very creative solutions indeed!!!