Structured Finance

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.

Selected Case Experience

RMBS Litigations

Residential Mortgage Backed Securities Litigation

Cambridge Finance Partners is involved in numerous litigations related to issuance of RMBS securities, related underwriting, and subsequent investor losses. These matters are ongoing and involve private and government actions as well as class actions.

Enron Securities Litigation

Consulting Experts in Securities Class Action

In one of the largest securities cases in U.S. history, Cambridge Finance Partners provided consulting services to counsel for a top-10 international bank in addition to assisting a testifying expert. This multi-year litigation, with plaintiffs’ total damages claim nearing $50 billion, involved a wide array of finance and economic research efforts. Typical for a 10b(5) securities case, we conducted a day-by-day event study, constructed trading models in order to replicate and critique plaintiffs’ damages claims, and analyzed financial reports, analysts’ reports, stock, bond, and options trading data, and other public information in order to identify curative disclosure events. We developed indices of industry performance that transformed over time along with the firm’s underlying business segments. We constructed bottom-up measures of enterprise value. In addition to these analyses, we assisted counsel in a multi-defendant coordinated defense effort, and we provided analysis and explanation of several financial structures including securitizations, swaps, derivatives, and other complex structures.

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