If you (collateral debt obligations) to explain simply in terms of CDO Can I?
Messenger with the current economic crisis, only 2 minutes Assign a report and my topic. How to tell I do not have a term of consent neunyi CDO Messenger.
Ok, 3, Number 1, 1 middle class, rich, one poor, talk to borrow 100,000 for each house purchased Can. This mortgage, the bank 1000 dollars for each person Next 10 years (1000 * 12 * 10 = 120,000) a month, I agree to pay. But Bank nadeon 10 years to regain the money you want, I want it now. Therefore, with the mortgages on and CDO groups, and it sold 100,005 thousand invetsors The end. So the bank was quickly able to gain $ 5,000. When Families pay for their care, rather than funding goes to the bank. CDO of two parts, or "Tranches" can be divided into. 1 invetsor from the rich For example, all pay off, plus family, January 2 in the middle of the family. Other invetsor rest. However, the same amount of 2 investors Because it will get more dangerous, 2nd tranch for investment less Will pay. Poor families have a higher chance of default.
barn dance St Mary’s school CDO 2006