Strategic Value of Kusin

  Strategic Management of

  Kusin Classification Code
  Field Research & Polling
  Field Research

  Macroeconomic Facts
  Microeconomic Facts &

  Some Other Risk Factors
  Blockage Discounts &
Capital Gains

Public Commentary

  Chelsea Now
    Vol. 3, #16
  Art + Auction
    March 2009

Prior to the inception of Kusin & Company, comprehensive economic, financial, and market data for the global art economy were hardly available. Although routinely provided for all other developed economic sectors - in most cases for many years by such firms as Reuters, Bloomberg, Thomson, and the Riskmetrics Group - no effort to harness conventional economic and statistical methods for the highly specialized art economy had ever been initiated.

As a result, the art economy had come to be characterized by fundamental inefficiencies, including widespread illiquidity and severe asymmetries of information.

 European governments and the European Union, ignoring independent research, some of which they sponsored themselves, took positions, sponsored legislation, and created regulations that began to drive away much of the art trade.

 Banks and other intermediaries, in the absence of the typical information they require for lending, provided in the standard nomenclature of banking and finance, often failed to extend even the most routine liquidity for many credit worthy participants in the sector. As a result, sector participants - ranging from dealers to trusts and estates containing important collections - often had to liquidate holdings rapidly, regardless of market conditions.

To supply critical information, and also to meet the business intelligence needs of direct market participants, financial intermediaries, and governments, Kusin & Company

 developed the Kusin Classification Code, comprehensive standard asset nomenclature

 instituted regular cycles of comprehensive field research and polling to measure and analyze the dealer and auctioneer sales channels

 created standard economic, financial, and statistical frameworks - both microeconomic and macroeconomic - to quantify and analyze market performance independently and define and manage financial risks unique to the sector

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