Articles
Frontline Inside the Meltdown
Are you completly up to date with the latest term CDO's?
CDOs stand for Collateralized debt obligations and are a type of asset-backed security and structured credit product. CDOs gain exposure to the credit of a portfolio of fixed income assets and divide the credit risk among different tranches: senior tranches (rated AAA), mezzanine tranches (AA to BB), and equity tranches (unrated). Losses are applied in reverse order of seniority and so junior tranches offer higher coupons to compensate for the added risk. CDOs serve as an important funding vehicle for portfolio investments in credit-risky fixed income assets.
I didn't an needed to look on the internet to found out what created this crisis. Daliy we are reading a lot of bad news, see big corporations in trouble, banks going bankrupt, bankers going home with insane bonuses although they cost their companies billions and still they ask for money from the goverment? We read but we don't have a clue what is going on in the world. Try to understand the gambling with credit default swaps and toxic assets, subprime mortgages and other risky financial constructs.
On of the things we didn't do enough is learning from the mistakes and take care that we are not creating a new bubble (if they are already not here) So what’s the learning from all this? Mankind has the ability to learn so we all mustt try to understand what was going on in the crisis There is a program on American Public Broadcasting System (PBS) which seems to bring a great deal of learning: Frontline - Inside the Meltdown. A very well done site and a very insightful documentary about the crisis. Interviews and original clips put together to understand the dramaturgy of the crisis: Bear Stearns, Fanny Mae, Freddie Mac and all the other finacials.
For you all there that want's to no about CD's what's the clip :)
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