What is CDO and credit default swap is?
I for CDO Am interested in knowing, collateral debt obligations and credit default Swap. Also tell me how to do this, CDOs, CDOs, who creates Some lines are created to benefit the buyer CDOs. Nanyi derived I would like to know the mechanisms behind the creation of products. For you Could you explain the mechanism, a simple arithmetic?
You are buying a slice of debt. $ 100,000 home loan, the The loan portion of $ 1000, you can buy. You Not owning a house. Did not lend money for buying a house. But now that the house was a loan. The landlord to pay If you "you" part and get 6% interest. If they If you do not pay, you get a foreclosure auction after the departure of …
Collateralized Debt Obligation (CDO)