Keyword: CDO

Bubble Economics (6/17/2010)

Run-away securitization of housing mortgages abetted by loose credit rating, shaky credit default swaps, and cheap money led to a huge housing bubble in the US.

Keywords: ABS, Asset-backed securities, bubble, CDO, CDS, collateralized debt obligations, credit default swaps, interest rate, mortgage-backed securities, rating agencies, securitization, subprime loans

Leveraging and Deleveraging (5/13/2010)

The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.

Keywords: ABS, asset-backed securities, CDO, collateralized debt obligation, deleverage, equity, interest rates, Leverage, leverage cycle, margin call, positive feedback