Introduction to collateralized debt obligations (to be listen to after series on mortgage-backed securities.
YouTube - Collateralized Debt Obligation (CDO)
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I’m pretty sure CDOs are not derivatives. CDOs are simply ABSs with defined tranches ranked by seniority.If you have a total return swap on a CDO portfolio, now that’s a derivative.
Nice, but get that pen sorted out. : )
good job! thanks!
wow!! that was great!!
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You are the man!!
thanx a lot !! this wz really helpful
HAhahaha sophisticated derivatives and equations hahahaha what a crap that’s so simple. You really suck at explaning simple financial terms and transactions. Please go back to your computer you are like an average broker learn from Buffet, Gasior, Schiff, Rogers, Simons and real investors who know what they are talking about. Youre boring !!!!!!!!!!!
Well what are the real risks?1) Asset risk is only realizable in conversion of the underlying asset class based on market conditions. The tranche market is not important, or its risks. What is important is the base asset class risk. Mainly, defaults and price erosion.2) Complexity discourages accurate pricing and risk exposure. So the uneducated rely on a rating agency who is just as ignorant = AAA rating that is really junk.