Veteran bond market executive and researcher Mark Adelson, known for his early warnings about MBS and ABS risks before the downturn, is joining BondFactor as its chief strategy officer.
Adelson referred questions about the move to the company. At deadline BondFactor had not responded to a telephone call about the matter or other questions about its business.
The company’s website says it is planning to offer a municipal bond guaranty backed by a patented balance sheet mechanism that is designed to ensure claims paying resources will be available.
Inordinate bond insurance claims caused by widespread underperformance of nonagency MBS and other structured finance securities during the downturn severely depleted many pre-existing bond insurers’ financial resources.
Adelson previously was a chief credit officer and later a research fellow at Standard & Poor’s, but left the firm earlier this year.