• C++ Programming for Financial Engineering
    Highly recommended by thousands of MFE students. Covers essential C++ topics with applications to financial engineering. Learn more Join!
    Python for Finance with Intro to Data Science
    Gain practical understanding of Python to read, understand, and write professional Python code for your first day on the job. Learn more Join!
    An Intuition-Based Options Primer for FE
    Ideal for entry level positions interviews and graduate studies, specializing in options trading arbitrage and options valuation models. Learn more Join!

The Story of the CDO Market Meltdown

^^^ Hahaha. I was in the process of posting the exact same thing.

I would let her collateralize my debt anytime.
 
Uh...yeah.
Anyway, yes her point that the CDO^n = 1, 2, 3,... market existed primarily to use excessive supply of mezz bonds to meet the demand for IG bonds is spot-on.

It is also worth noting that the primary thrust of most government intervention since the bubble began to deflate has been to preserve the capital of debt investors to the greatest degree possible. It follows that the demand is still out there to be met.

Did anyone else notice that Citigroup is doing the first CLO deal since the blowup? Meet the new market, same as the old market:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aywTa0.RvuA4&pos=5
 
Back
Top