"Rocket Science" Keeps Structured Finance Honest

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R&R Consulting celebrates the power of mathematics in structured finance with the relaunch of its website.

But, you do have to be serious about the science of finance.

R&R Consulting, a New York City structured finance credit metrics firm, celebrates the power of mathematics in structured finance with the relaunch of its website, http://www.creditspectrum.com. "You don't have to have a Ph.D. in engineering to understand what we do," says Sylvain Raynes, one of R&R's partners, who has a doctorate in aerospace engineering from Princeton. "But, you do have to be serious about the science of finance."

R&R uses heavy-duty modeling techniques taken from engineering to analyze the credit quality of non-recourse debt obligations backed by pools of receivables, like credit cards, residential mortgages, automobile loans, equipment leases, or even corporate debt, known as structured securities. As the borrowers repay their obligations, their cash flows become the sole source of repayment to the bond investors.

In the words of Ann Rutledge, also an R&R partner, "There's only one set of tools you can use to predict how these pools will tend to behave over time. And that's mathematics—mathematics and statistics. You can't have an honest understanding of risk and return on structured securities without these tools."

To develop that understanding, R&R's newly redesigned website introduces clients and prospective clients to the breadth of the firm's structured finance capabilities. Current mandates range from a film-finance securitization designed to help finance independent and established film-makers, to ABS*TRAK software that performs ongoing auditing of asset-backed securities (ABS).

In addition to their consulting work, Raynes and Rutledge teach advanced finance courses at universities like City University of New York's Baruch College; the University of California, Irvine; and, in a reflection of Rutledge's years of finance experience in Hong Kong, the Hong Kong University of Science and Technology (HKUST).

R&R's creditspectrum site is intended as a home for Raynes' and Rutledge's students as well as for their clients. "Structured finance is not taught at any depth in most universities, even in financial engineering programs," says Raynes. "Practitioners come to our classes, or read our book"—"The Analysis of Structured Securities," published by Oxford University Press in 2003—"and literally feel joy that a whole world is opening up to them."

For further information: contact Ann Rutledge, or see the R&R Consulting website at http://www.creditspectrum.com.

About R&R Consulting

Sylvain Raynes and Ann Rutledge each have fifteen years experience managing structured risk. They first worked together in the Structured Finance Group of Moody's Investors Service. In early 2000, they formed R&R Consulting, a New York-based partnership specializing in credit metrics and consultancy for the structured finance market. They are co-authors of "The Analysis of Structured Securities" (ISBN 0195152735), published by Oxford University Press.


Ann Rutledge

R&R Consulting



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