collateralized debt obligations
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The term CDO is relatively new, coined by the rating agencies and others in late 1997 to describe asset-backed securities (ABS) backed by a broad vari...
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When two markets offer different values for the same or nearly the same commodity an arbitrage opportunity may present itself. An example of these one...
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Credit-rating agencies have historically been quite successful at avoiding liability over their ratings by appealing to the First Amendment’s guarantee of the freedom of speech. However, the advent of structured finance, such as residential mortgage-backed securities and collateralized-debt obligations, has drastically altered the nature of what the credit-rating agencies do. As people search for culprits in the credit crisis and investors are stinging from the loss of billions of dollars of highly rated securities that occurred almost overnight, the credit-rating agencies find themselves being haled into court with increasing frequency. Courts should not mechanically apply the actual-malice standard simply because the defendant is a credit-rating agency; rather, when a credit-rating ag...
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Feature - Collateralized debt obligations
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Wisconsin school districts that put millions of borrowed dollars into complex investments to help pay employee retirement benefits were misled about the risks of the undertaking, an attorney hired by the districts says.
Robert Kantas said he did not know if his investigation of the deals would lead to a lawsuit or other legal action. He said his firm, which specializes in investment fraud, was hired only to analyze the districts' investment and report on their legal options.
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WASHINGTON (Reuters) - A unit of Royal Bank of Canada will pay $30.4 million to settle civil charges that it sold unsuitable complex financial products to five Wisconsin school districts.
The Securities and Exchange Commission issued the administrative order againstin an expansion of its investigation into collateralized debt obligations and other risky products that played a role in the recent financial crisis.
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The louder they talked about the disadvantaged, the more money they made. And the more the financial system tottered.
Who were they? Most explanations of the financial calamity have been indecipherable to people not fluent in the language of "credit default swaps" and "collateralized debt obligations." The calamity has lacked human faces. No more.
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Published reports describe Merrill Lynch's then-CEO Stanley O'Neal as an "autocratic leader" overseeing a group of trusted lieutenants, who led Merrill's profitable but "belated" push into the market for collateralized debt obligations.