What rhymes with synthetic CDO?


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Monday 11 September 2017 14:52 London/ 09.52 New York/ 22.52 Tokyo

Category: CDOs

Now that synthetic CDOs are back in vogue (SCI 15 August), will history repeat itself, or only rhyme? Over the last two years, volumes have grown from US$10bn to US$30bn for the instrument widely blamed for causing the 2008 global financial crisis. What gives, and should we be worried?

To answer this question, it is important to understand what makes ...  showing 60 out of 1030 words of this article

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DealVector+coo+and+co%2Dfounder+Dave+Jefferds+suggests+that+synthetic+CDOs+may+fulfil+their+potential+if+investors+can+solve+three+issues

%3CBODY%3E%3Cp+align%3D%22justify%22%3ENow+that+synthetic+CDOs+are+back+in+vogue+%28SCI+15+August%29%2C+will+history+repeat+itself%2C+or+only+rhyme%3F+Over+the+last+two+years%2C+volumes+have+grown+from+US%2410bn+to+US%2430bn+for+the+instrument+widely+blamed+for+causing+the+2008+global+financial+crisis%2E+What+gives%2C+and+should+we+be+worried%3F%3C%2Fp%3E%0D%0A%09%3Cp+align%3D%22justify%22%3ETo+answer+this+question%2C+it+is+important+to+understand+what+makes+synthetic+CDOs+attractive+instruments%2E+Two+words%3A+customisation+and+leverage%2E%3C%2Fp%3E%0D%0A%09%3Cp+align%3D%22justify%22%3EPerfect+customisation+of+risk+is+something+that+everyone+should+agree+is+a+%2E%2E%2E%2E%2E%2E



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What rhymes with synthetic CDO?



DealVector coo and co-founder Dave Jefferds suggests that synthetic CDOs may fulfil their potential if investors can solve three issues