Can anyone explain what are these?
You want to remove the risk off your balance sheet but either may be restricted from selling the assets, or deem it too time consuming / costly. In this case, you use a CDS to put the liability on another securitizing entity which will then structure tranches to distribute the incoming cash flows and associated risk for offering the credit protection. (I think.)
A CDO with derivatives as the collateral… a CDO with Credit Default Swaps… It has the characteristics as a regular CDO, but is doing it with other instruments other than the actual bonds or MBS.
Aren’t they baskets of credit default swaps? That is, baskets of basically insurance contracts on fixed income securities.
Yes, they are probably basked of CDS insurances packaged as a synthetic CDO and thats when the Correlation Trade credit default strategy comes into picture?
bhill020 Wrote: ------------------------------------------------------- > Aren’t they baskets of credit default swaps? That > is, baskets of basically insurance contracts on > fixed income securities. I don’t recall it necessarily being baskets, I’m sure it could be, but I think the CFAI example didn’t use baskets. By that I mean, I’m thinking one CDS on a pool of underlying recievables capable of absorbing multiple events, I guess you could also look at this as a basket of CDS’s if you are thinking one CDS for every recievable in the pool.
You know I’ve probably answered what a synthetic CDO is 5 times. It isn’t really tested much on the exam if at all.
If I get a vignette on this I will scream “PINKMAN!!!” and surely you will here about it via the internets.
Did you get the shirt?
It came (I had it sent to my parent’s house cause I just moved) and I will be picking it up early tomorrow. I am very pumped and will be sporting it on the big day.
I want a shirt wtf!
I didn’t get a chance to check, but I’m assuming it has the manatee on the front I requested?..jk, I might have one airbrushed on tho.
I don’t take requests. But it has a good amount of High School Musical stickers. You might just shat yourself when you see it.
LOL, it’s uncanny how excited I am.
Well there are only four known in existence. You have one, I have one, Zim has one, and one is being held in escrow by a secret guardian.