Financial Instruments
From our firm's earliest days, we have actively participated in landmark cases involving complex financial instruments. We are experts in applying sophisticated financial tools to value a broad range of financial instruments and derivatives, including warrants, swaps, futures options, structured notes, currency options, and mortgage and other asset-backed securities. We have served as, or supported, experts on many cases involving valuation of derivative instruments, where our role has included investigating ex ante and ex post valuations.
Subprime Lending
The subprime mortgage market – loans to high-risk borrowers, and the underlying instruments to finance and guarantee those loans – has grown dramatically over the last several years. Industry experts expect more than one million of the eight million adjustable-rate mortgages originated since 2004 to enter foreclosure. This looming crisis has federal and state investigators examining a wide variety of interlaced concerns affecting numerous stakeholders in the subprime lending market, and is also resulting in various lawsuits.
Expertise in complex valuations of instruments such as those involved in subprime lending is a longstanding strength of Analysis Group. Our professionals and academic affiliates have considerable experience in litigations involving the subprime market and in the disciplines directly relevant to subprime lending disputes. Analysis Group is uniquely qualified in the disciplines key to any investigation of subprime lending-related activities (our Qualifications).
We have a deep understanding of the underlying economic issues faced by various stakeholders in this market, including:
- Subprime borrowers alleging "predatory" lending practices
- Subprime lenders filing for bankruptcy
- Subprime lender shareholders alleging securities fraud
- Displaced employees of bankrupt lenders alleging pension mismanagement