Sentences with phrase «collateralized debt obligations»
The hedge fund famously profited during the financial crisis by investing in risky mortgage securities known as collateralized debt obligations (CDOs) while also shorting them, a maneuver highlighted in Michael Lewis's book «The Big Short.»
fortune.com
Many directors joined the boards of financial institutions in simpler times, long before the days of collateralized debt obligations, structured investment vehicles, credit swaps, and other complex financial tools.
Government bonds are a straightforward security, unlike, say, synthetic collateralized debt obligations stuffed with sub-prime mortgages.
This year was supposed to be the coming - out party for the commercial real estate collateralized debt obligation (CRE CDO) market.
In addition, we have no investments in collateralized debt obligations or similar instruments.
The Big Short was the filmic adaptation of Michael Lewis's book about the financial crisis, which, in its more painful details, was a movie about collateralized debt obligations and credit default swaps.
Advised on collateralizing debt obligations and on enforcing alternative creditor remedies, including advising on reclamation and mechanic's liens.
If the government does end up owning some of these distressed commercial properties and CMBS, it will likely have a hard time working through them, McIlwain contends, pointing out that it will own various tranches of residential and commercial mortgage - backed securities, along with collateralized debt obligations (CDOs) and structured investment vehicles (SIVs) made up of all the above.
On Dec. 21, 2011, the U.S. Bankruptcy Court for the District of New Jersey approved a liquidation plan for collateralized debt obligation issuer («CDO») Zais Investment Grade Limited VII («ZING VII»).
Magnetar, which approached investment banks in 2006 and 2007 with an elaborate plan to create collateralized debt obligations, said today that the SEC has ended its investigation into the firm's activities.
She presided over part of the SEC's case against Fabrice Tourré, the Goldman Sachs trader who gleefully sold collateralized debt obligations that he knew were packed with failing mortgages.
«The machinery of standardized tests» is to education reform what collateralized debt obligations are to the economic melt - down.
Unbeknownst to most investors, some of the largest money market funds today are putting part of their cash into one of the riskiest debt investments in the world: collateralized debt obligations backed by subprime mortgage loans....
Money - market funds have occasionally held asset - backed securities like collateralized debt obligations, but they have tended to be less risky and higher - quality tranches.
Ratings companies like Moody's Investors Service use computer models to help predict losses on thinly traded debt investments called collateralized debt obligations, or CDOs, that are often tied to pools of high - risk home loans.
Back in 2010 it paid $ 550 million to settle charges brought by the Securities and Exchange Commission that it mislead investors into buying a so - called synthetic collateralized debt obligation named Abacus, which was made up of a bundle of financial instruments tied to subprime mortgage bonds, many of which plummeted in value shortly after the deal was sold.
Presently the Fed is in the process of monetizing $ 2 trillion in Treasuries, Agency paper, such as Fannie Mae and Freddie Mac and collateralized debt obligations held by lenders.
This was a major cause of the real estate collapse of 2008 with the default of so many collateralized debt obligations (CDO).
FGIC and other bond insurance companies have been hobbled by their expansion into guaranteeing risky collateralized debt obligations (CDOs) and asset backed bonds, markets that have been hammered by rising mortgage losses.
Investment banks enjoy these mortgages of course, because they set up mortgage - backed securities and earn tons from collateralized debt obligations, and the private banks earn fees from selling mortgages.
In 2006, the value of U.S. mortgage - backed securities reached about $ 8.5 trillion, while U.S. collateralized debt obligations were valued at $ 2 trillion.
As this occurred, the value of all outstanding collateralized debt obligations also declined, creating huge losses for investors, including pension funds, mutual funds, hedge funds, and other types of investment vehicles.
The market players receiving the 2.5 % per year payment are typically hedge and other investment funds running collateralized debt obligations.
For example, in 2006, asset - backed securities, mortgage - backed securities and collateralized debt obligations represented nearly 60 % of the MIP's assets.
In 2007, the firm began betting against collateralized debt obligations.
Imagine a bank that has bought a Single - A slice of a trust - preferred collateralized debt obligation, 5 % of the tranche.
Using so - called «colored coins» — Blockchain based collateralized debt obligations — allows the exchange to transfer any kind of real - world asset to the Bitcoin Blockchain and enable trading of such without incurring transaction fees.
For the remainder 2003, real estate - oriented collateralized debt obligations (CDO) are expected to continue to come to market.
He was one of three members of the firm's Bond Policy Committee that managed $ 27 billion of fixed - income assets, and he established and led State Street's collateralized debt obligation business and quantitative research team.
Third, the boom was fueled by new financial products, such as collateralized debt obligations that were backed by subprime and Alt - A mortgages.
What is the appropriate correlation rate in terms of the loss experience across the different subprime and Alt - A mortgage pools that should be used in assessing the value of collateralized debt obligations?
Mezzanine loans are finding an exit strategy in the real estate collateralized debt obligations (CDO) market — which are similar to CMBS, but can include a broader range of debt.
At ING, he was the head of investment grade corporate credit, responsible for investment grade corporate credit as well as collaterized loan obligation and synthetic collateralized debt obligation investment portfolios.
Long before anyone was talking about collateralized debt obligations or the credit crunch, many investors had already unwittingly loaded up their portfolios with explosives timed to go off at the first sign of trouble.
Our firm developed unique litigation theories and winning arguments that helped recover tens of billions of dollars on behalf of our clients related to residential mortgage - backed securities and other structured financial products, including collateralized debt obligations, credit default swaps, structured currency derivatives, structured notes, equity derivatives, and other more exotic derivatives.
I've been through regime shifts in the markets for collateralized debt obligations (CDOs), asset - backed securities (ABS), residential - backed securities (RMBS) and commercial mortgage - backed securities (CMBS).
They make their money from packaging corporate finance deals, selling credit default swaps, and creating collateralized debt obligations.
As can probably be guessed, investment banks packaged and sold collateralized debt obligations - at a slight premium - to outside investors.
There's a great moment in the new movie «The Big Short» when Selena Gomez turns to the camera and explains to the world what collateralized debt obligations are.
Long - term loans lost out in favor of fancy and complex financial instruments like collateralized debt obligations that sucked up every bit of mortgage - backed debt that banks couldn't grind out fast enough and credit default swaps that lured investors into believing that their bets were covered.
Where this gets confusing is with collateralized debt obligations (CDOs).
CLOs are a close cousin, and have a similar structure, to collateralized debt obligations (CDOs), which became one of the chief financial villains in the housing bust and play a staring role in Michael Lewis» The Big Short.