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Thursday, May 01, 2014

Viable Opposition: Collateralized Debt Obligations - An Unlearned Lesson

Viable Opposition: Collateralized Debt Obligations - An Unlearned Lesson

Back in October 2013, I posted a brief on the return of collateralized debt obligations or CDOs, those toxic little gems that helped bring the financial world to its knees in 2008 - 2009.  I thought that it was time for an update to see what the great minds of Wall Street are selling to their discerning clientele and how much they are selling.

Let's take a quick lesson in exactly what CDOs are, remembering that this is what happened to interest rates over the past two decades:

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