- CDO: Collateralized Debt Obligations
Residential mortgage-backed securities. A type of derivative (as I understand it) that was sliced and diced up to make the many levels of tranches of “risk” that were sold to both governments, private, public, religious organizations, you name it…these securities were “HOT.” They are referred to in several different ways: CMOs, CDOs, it appears that there are different ways to “package” a derivative, through the use of mortgages, currencies, etc. The Business Journals designed an interactive graphic to visually depict this type of instrument “in action.” What is a C.D.O?
- Global Financial Sector Write-Downs
It was not just U.S. banks that needed bailouts and had significant “write-downs”, the Washington Post put together a worldwide listing: Here’s the link: Write-downs
- As “they” say, a picture is worth a thousand words. Here is a graph, developed by the Washington Post newspaper, of what the global investments looked like around year 2008. The graphic displays equity, debt and bank deposits: Boom and Bust
I linked in an earlier blog posting to the 3-part article that accompanies the Boom and Bust graphic.
I may add to this blog in the future and reference back to it in future blogs.
By the way, Captain Ahab is still searchin’ for the “London” whale. But it will be harpooned for my next blog post. If we thought the management at “Big Banks” were in control at all, you will see how “wild West” and laisser-faire the management of bank traders really was.
Author’s Addendum (9/13/15): Here’s a short video from CNBC about: Collateralized Debt Obligations (CDOs): CNBC Explains.