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A comment on Intractability of Financial Derivatives.

Re:Intractability of Financial Derivatives by jwb119 on Thursday October 15, 2009 @10:11AM (#883389)
>a CDO (collateralized debt obligation) is a security formed by packaging together hundreds of home mortgages

there's actually another layer of abstraction involved. a mortgage backed security, or collateralized mortgage obligation (CMO), is formed by packaging together a large group of home mortgages. a CDO is made by packaging together hundreds of MBS obligations or CMOs.

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Re:Intractability of Financial Derivatives by yangyang on Thursday October 15, 2009 @10:44AM (#883460)
CDOs are not necessarily just composed of mortgage derivatives. They can be put together from bonds, CDSs (synthetic CDOs), syndicated loans (CLOs), other CDOs (CDOs squared), a mixture of these and other debt instruments.
[ Parent | on HN ]
Re:Intractability of Financial Derivatives by therealazeem on Thursday October 15, 2009 @12:11PM (#883653)
Yep. And you can count the leverage at every single level
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