Unpacking the Risks in the CDO Market
Saskia Scholtes and Gillian Tett have a long piece in the FT on risks in and to the collateralized debt obligation (CDO) market – the market which seems to be the center of attention and fears these days, in the wake of the Bear Stearns brouhaha. There are some good points made in the piece, but I think it's worth teasing out exactly what the different risks in the CDO market are, because even the excellent Tett is failing to make some very important distinctions.
- ...






