In 2008, a Monoline insurer sued Merrill Lynch to void a number of Super Senior investments on technical contract terms. After the court dismissed those claims, Devon Capital:
- undertook a forensic investigation of the risk of the CDOs, the client’s credit processes and Merril Lynch’s sales tactics and
- directed the modelling of the transactions.
From that information, we developed specific, detailed evidence that Merrill Lynch had fraudulently misrepresented the actual risk to Monoline. The client used Devon Capital’s arguments to negotiate favourable commutations.
Devon Capital represent a major European financial institution that will shortly be filing a claim against another top-tier CDO arranger on fraud claims that our firm developed using the same forensic tactics and legal arguments as the Monoline case.
Devon Capital are working with a European Bank that bought a very large investment grade structured finance portfolio in developing potential fraud claims against many of the top-tier CDO arrangers.
Devon Capital LLP is Europe's leading advisory firm on CDO dispute management and resolution.