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发帖数: 3656 | 1 CDO, collarteralized debt obligation.
the contract is based on a pool of credit risky assets.
the issuer of the CDO selects and buys these assets before the issuance.
this process is reffered to as ware housing. during the ware housing, the
issuer is exposed to the risk that these assets loose value. Typically the
issuer will put on short term hedges.
the asset pool is divided into tranches.
Each tranche is defined by an attachment point and a detachment point. the
buyer of the tranches pays th |
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