The catalyst: ratings agency downgrades on structured products like collateralized debt obligations containing subprime-tainted mortgage collateral.
For more adventurous clients, Corso suggests high-quality tranches of collateralized debt obligations, or CLOs.
Collateralized debt obligations are securities backed by various assets, such as bonds and loans.
Some of these assets are extremely complicated: credit derivatives, collateralized debt obligations, credit defaults swaps.
The fund, which invested in collateralized debt obligations (CDOs), later failed and investors lost much of their investment.
Bryan Zwan, entrepreneur and prominent donor to the Church of Scientology, is now dealing in collateralized debt obligations.
The agency also dropped charges against Edward Steffelin last November for actions associated with collateralized debt obligations.
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Third, it's unwise to invest in vehicles like collateralized debt obligations and collateralized loan obligations that you don't understand.
We are thinking about investment banks who package and sell collateralized debt obligations.
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Structured products like collateralized debt obligations have lost billions in value as the loans underlying their complex structures deteriorate.
Many subprime mortgages were combined with other kinds of borrowings and sold to investors via collateralized debt obligations.
What did you think of the investment banks that had enormous write-downs because of their involvement with collateralized debt obligations ?
Collateralized debt obligations (CDO) and other structured finance products trade over-the-counter rather than on an exchange, at least in the United States.
Several top bank executives even testified that they had no idea the leveraged collateralized debt obligations they were dealing in were high-risk.
Stan O'Neal, the chief executive, has tried to take the firm into all of these new areas like collateralized debt obligations, mortgage-backed securities.
Lehman's exposure to mortgage- and asset-backed securities and collateralized debt obligations is 400% of its tangible common equity, according to research by Sanford Bernstein.
Moody's also raised concerns about deterioration in MBIA's insured portfolio, given deterioration in mortgage performance data, particularly home equity and asset-backed collateralized debt obligations.
The company caters to fund managers and institutional investors trading in illiquid assets like private company stock, bankruptcy claims, loans, mortgage-backed securities and collateralized debt obligations.
The polemical edge is unrelenting: deregulation of the financial markets was a disaster, and piling collateralized debt obligations and insurance swaps atop sub-prime mortgages was insane.
It was breaking news this week that arrests were imminent in a case involving collateralized debt obligations (CDOs) related to home mortgages (bundled notes sold as bonds).
Collateralized debt obligations, or CDOs, are securities backed by pools of assets--and often mortgages--that have handed banks big losses this year as many homeowners defaulted on loans.
But by then the firm was addicted to the stuff, using it as raw material for collateralized debt obligations it could package and sell for rich fees.
Although the investments resembled bonds, paying buyers a fixed interest rate for taking on the default risk of corporate debt, the products invested in synthetic collateralized debt obligations held by Lehman.
From mortgage-backed securities to municipal bonds, sovereign debt to collateralized debt obligations, ratings agencies have notoriously mispriced risk over the last decade, and nearly all of us have paid the consequence.
The insurer had painted itself into a corner by writing credit default swaps on mortgage-related securities and collateralized debt obligations that were set to pay out in the event that those investments soured.
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While Seattle's Washington Mutual was collapsing into the embrace of JPMorgan Chase, former Seattle First National executive Rob Sullivan was happily occupied at his winery, where thoughts about collateralized debt obligations rarely intrude.
Tilton operates through structured financial vehicles, picking up the distressed debt of dozens of companies, paying an average of 50 cents on the dollar and rebundling them into so-called collateralized debt obligations (CDOs).
On the grading scale, BofA did slightly better, with Kramer noting the bank is in a "difficult situation" with troubled assets in collateralized debt obligations (CDOs) and some real estate from Merrill Lynch.
Similarly, near-money is created when one party creates a derivative and sells it to another, often with little if anything in reserve, as we've seen with the collapsing collateralized debt obligations backed by subprime mortgages.
Most investors had already been expecting a relatively large write-down, based on the knowledge that UBS has been heavily involved in the issuing of collateralized debt obligations, or securities that have subprime debt packaged into them.
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