Examples of CDO in the following topics:
-
- Credit agencies always rated CDOs with an AAA credit rating, even though some CDO's funds contained subprime mortgages.
- Without the AAA rating, the investment bankers could not sell the CDOs.
- The AAA credit rating became vital for bankers to sell the CDOs.
- For example, a company could package their debt into CDOs.
- The CDO market ranged from $0.5 trillion to $2 trillion in 2006.
-
- If banks retained their rigid lending standards and the creditrating agencies accurately rated the CDOs and ABS, then the housing bubble would still form but at a slower rate.
-
- Once they had purchased the loans, larger investment banks bundled them into huge packages known as collateralized debt obligations (CDOs) and sold them to investors around the world.
- Even though CDOs consisted of subprime mortgages, credit card debt, and other risky investments, credit ratings agencies had a financial incentive to rate them as very safe.
- A financial panic ensued that revealed other fraudulent schemes built on CDOs.
-
- Secondly, banks knowingly grouped these loans into bundles called collateralized debt obligations (CDOs) and sold them as extremely safe derivative investments.
-
- CDO's) that drove the economy into disaster were bailed out by the government.
-
- Examples of asset-backed securities are mortgage-backed securities (MBS's), collateralized mortgage obligations (CMOs), and collateralized debt obligations (CDOs).