I'm working on an interesting project at the moment, part of which involves designing an art-backed credit security. The basic idea is to take a bundle of a slow, illiquid asset, e.g. art, and turn it into a credit derivative that can be traded on an exchange. In the process I have learned some interesting things:
1) It’s quite possible to build a stable index for art
2) It turns out art naturally falls into a set of stable asset classes
3) It turns out that the value of sub-classes of assets, e.g. old masters, post-modernists etc. are surprisingly well correlated
4) Most interestingly: these asset classes have long term performance statistics which are different from either stocks or bonds in terms of market index correlation.
It’s #4 there that makes this a very interesting assignment. Some days, my job doesn’t completely suck.
Subscribe to:
Post Comments (Atom)
1 comment:
very interesting... so, where does all your digital art fit into this? are you still dabbling in that?
Post a Comment