Let us now review just a few of its activities and operations as related to structured financial instruments.

May 1998 – INVESTING IT; Yes, Risk-Taking At the World Bank

Interview with Afsaneh Mashayekhl Beschloss, chief investment officer of the World Bank, The New York Times

"'The job is to make money, and do your best at it,' said Mrs. Beschloss, dismissing suggestions that the bank, which has many impoverished countries as members, might lean on her to invest with the heart as well as the head. 'There is absolutely no pressure on us to buy anything.'

Mrs. Beschloss.... maneuvers much of her portfolio through what she calls a 'cutting edge' investment world of credit derivatives, currency swaps, private stock deals, repurchase agreements and mortgage-backed securities.

The exotic financial tools make it possible for the bank's $20 billion in short-term investments to beat the benchmark six-month London interbank rate by more than 10 basis points, or one-tenth of a percentage point, a signal achievement when so much money is involved.

'We're always on the curve of using new tools, whether it's using asset-backed securities or the asset-swap market' said Mrs. Beschloss.

The bank also did well with what she called 'euro-convergence trades,' profiting from policies that European countries are following to qualify for the European Monetary Union. Late last year, Mrs. Beschloss bet that the Bank of England would raise interest rates. 'We made $22 million out of that one' over a couple of days, she said.

'What is unique about Afsaneh,' said Peter Yu, a managing director of AIG Capital Partners in New York, 'is she has an uncanny ability to create a private-sector climate in a multinational institution'.”

June 2000 – Legal and regulatory considerations for residential mortgage backed securitization in developing economies – The cases of Malaysia and Mexico

"While securitization has met with great success in the United States, it is important to bear in mind that the legal and regulatory conditions which facilitated growth of this market may not be easily replicated in other countries.

Introduction to the project: Legal and regulatory issues are, in some jurisdictions, the most complex and costly issues to resolve prior to the initiation of a successful residential mortgage-backed securitization (RMBS) program. Our objective is, via at least two case studies, to work through the legal review and remediation process inherent before any RMBS can be instituted.

Conclusion – Malaysia: At this time, it appears that there exist numerous significant impediments to the development of an effective RMBS market in Malaysia. However these impediments may be overcome legislatively as was done in Mexico.

Conclusion – Mexico: The Mexican legal context is sufficiently developed so as to allow effective RMBS; however, certain legislative amendments are required.