Collateralised debt obligation
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| Docs | Full blown 144A standalone. Hundreds of thousands of little words, and not one of them will help you. | 9 |
| Amendability | The manager might make some portfolio substitutions, but who do you think that will help? | 8 |
| Collateral | Ninja collateral. Literally. | 7 |
| Transferability | Yeah but no. Made worse because they look so transferable. | 7 |
| Leverage | Funding-wise, no. Money down up front. Risk wise? Hell yeah. | 7 |
| Fright-o-meter | But the ratings! The ratings! | 8 |
Collateralised debt obligation — three words which taken separately seem harmless and rather nice, but when put together convoke Satan and all his hellish angels of leverage. when bundled together and sliced up, make a CDO squared which really is the stuff of nightmares.