Structured Credit Products. History, Pricing, and Risk Management. Guest: Mr. Fabrice Tourre

May 22, 2017. Mr. Fabrice Tourre, former Vice President and Co-Head of European Structured Credit Trading at Goldman Sachs and currently a Ph.D. student in economics at the University of Chicago. Mr. Tourre was involved in the structuring of the famous Abacus CDO that was shorted by hedge fund manager, John Paulson. After the financial crisis of 2008, the SEC brought a suit against Goldman Sachs and Tourre for misrepresentation on the Abacus CDO. Goldman Sachs settled the case for $550 million in 2010. The case against Fabrice Tourre went to civil trial, where he was ordered to pay $825,000 in penalties after a jury found him liable for nondisclosure of information. Mr. Tourre, one the experts in CDOs, discusses the structured credit market and the role it played in the financial crisis of 2008. He also gives students his words of advice for their careers. Q&A Begins at: 01’11’05”.