Yep, below is a link to more about "Collaterilized Debt Obligations". Mortage Backed Securites are but one form of CDO:
http://en.wikipedia.org/wiki/Collateralized_debt_obligation http://en.wikipedia.org/wiki/Mortgage-backed_security Regards, LelandJ Nicholas Geti wrote: > http://finance.yahoo.com/tech-ticker/article/142790/Black-Hole-AIG-Needs-Another-10-Billion?tickers=aig,gs > > After all the money AIG's had shoveled at it, why does it need another $10 > billion? Because, as the Wall Street Journal reports, the money its gotten > from the government are supposed to pay off its bad CDS bets -- essentially, > the money went to retiring the underlying CDO --- but it's also stuck $10 > billion on what were just bad bets, not necessarily designed to help clients > manage risk. > > The $10 billion in other IOUs stems from market wagers that weren't contracts > to protect securities held by banks or other investors against default. > Rather, they are from AIG's exposures to speculative investments, which were > essentially bets on the performance of bundles of derivatives linked to > subprime mortgages, commercial real-estate bonds and corporate bonds. > > These bets aren't covered by the pool to buy troubled securities, and many of > these bets have lost value during the past few weeks, triggering more > collateral calls from its counterparties. Some of AIG's speculative bets were > tied to a group of collateralized debt obligations named "Abacus," created by > Goldman Sachs. > > > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
