Though not completely immune to the troubles in the credit markets, the European banks that control most of the Czech banking sector have been those with less exposure to collateralized debt obligations and the sub prime crisis in the US, added Marek.
In the world of credit, there was scant truth in the collateralized debt world, and even less moral justification for lending more than a property was worth to a borrower who could never repay.
It is possible that motor neurons and dopamine neurons are selectively vulnerable to neurodegenerative processes in part because they have long and/or highly collateralized axons as compared to less vulnerable neurons [54] [56].
But when it comes to assets held via a fund or indirectly through collateralized debt obligations, the system is less transparent.
Besides determining how much to set aside to cover future losses, banks will need to decide how much to value hard-to-trade financial instruments, like mortgage-backed securities and collateralized debt obligations, that are probably worth less than they were a few weeks ago.
A collection of Third World debt, collateralized mortgage obligations, asset-backed securities and so on, yet less volatile than a rock-solid government bond.
Having read the book, I now have a much better understanding of credit default swaps and synthetic collateralized debt obligations and can explain them in five sentences or less to anyone interested.
He explained how Wall Street created collateralized debt obligations to buy up risky paper, pool it and make it less risky, in turn enabling more reckless lending.
Even many bankers — much less average Americans who lost their shirts — were gobsmacked by the acronyms, and scrambled to figure out how collateralized debt obligations and credit default swaps worked.
They called them CDOs, collateralized debt obligations.
