Synthetic CDO – The Goldman Mike Burry Big Short Trade Before the 2008 financial crisis the incentive for investors to buy mortgage backed securities was simple. For roughly the same implied credit risk as US sovereign risk you had the option to earn excess returns.
Understanding CMO, CDO and CDS The third part of the Big Short Case Study that traces the origin of the mortgaged backed CMO CDO CDS product sets referenced in the book and the film. The terms stand for Collateralize Mortgage Obligation (CMO), Collateralize Debt Obligation (CDO) and
Big Short Takeaways for investors and traders – II Part two of our three part series on The Big Short Case Study for value investors and fixed income traders. In our first post we reviewed the context of the book, characters and the Credit Default Swap
The Big Short case study. For value investors and portfolio managers. For portfolio management and fixed income students the 2008 – 2009 financial crisis represents a terrific learning opportunity. As I teach portfolio management to Executive MBA students I have started to use a class room