Exact(11)
We don't sell collateral debt obligations, but we do sell cookies to help keep our schools going".
The offering circular describing the deal states: "the composition of the Eligible Collateral Debt Securities will be determined by the selections of the Manager" which was Credit Suisse.
Goodwin's own knowledge of collateral debt obligations, credit default swaps or over-leveraging against US sub-prime mortgages was equally rudimentary.
October was an especially difficult month in the markets, as credit rating agencies downgraded collateral debt obligations, or C.D.O.'s, which are products used to repackage and then sell the debt.
In addition to greed, there are four other elements that contributed to the mortgage mess: executive hubris, stupidity, lack of effective risk management and an absence of regulation in the collateral debt markets.
Just as trivial capital charges encouraged lenders and borrowers to overdo it with AAA-rated collateral debt obligations, the same flawed structure in the government debt market encourages and therefore practically ensures a repeat of this behavior — leading to an even larger crisis.
Similar(49)
"If Bear had failed," the senior official went on, "all these money-market mutual funds, instead of getting their money back on Monday morning, would have found themselves with all kinds of illiquid collateral, including C.D.O.s" — collateralized debt obligations — "and God knows what else.
The banks will then be able to obtain these funds in exchange for putting up their own collateral, including debt currently not accepted as collateral by the European Central Bank.
That collateral was debt issued or guaranteed by the Greek government, which was junk-rated and therefore barred by the ECB's collateral rules, which insist on an investment-grade credit rating.
And because much of that borrowing is done off official balance sheets, often using government land or assets as collateral, the debt can be hard to track and assess.
Gazprom owns 46percentt of NTV and holds another 19percentt as collateral for debts Mr. Gusinsky's company, Media-MOST, must pay off by July.
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