CDOs Rise From The Dead


	CDOs Rise From The Dead

Tina Russo

7-8-2008 9:14 AM

629 views

tags:

cdos, re-remics, collateralized debt obligations, goldman sachs, jpmorgan chase, mortgage bonds, credit crunch

Tina Russo says:

These reinvented CDOs are supposed to be less risky...we'll see. Fool me once, shame on you. Fool me twice, shame on me.

1 Comment |

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7-10-2008 8:15 AM

Bill1234

recently issued re-REMICs, in Fitch's opinion, have had insufficient credit enhancement to support AAA ratings, given their collateral and structural features.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/7208dd8d-6508-4abc-be20-5cb964d20c5d/A36AD393-47F1-4FF7-875B-A4068103B870/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.bloomberg.com/apps/news?pid=20601109&sid=a0TGMrBy2PyE&refer=home" href="http://www.bloomberg.com/apps/news?pid=20601109&sid=a0TGMrBy2PyE&refer=home" style="font-size: 11px;">www.bloomberg.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloomberg.com/apps/news?pid=20601109&sid=a0TGMrBy2PyE&refer=home"><P>Collateralized debt obligations that helped drive banks to
$400 billion of writedowns and credit losses are finding buyers
under a different name: Re-Remics.     </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.bloomberg.com/apps/news?pid=20601109&sid=a0TGMrBy2PyE&refer=home">JPMorgan Chase & Co. and at least
six other firms are repackaging unwanted mortgage bonds as sales
of CDOs composed of asset-backed securities fall to less than $1
billion this year from $227 billion in 2007 because of the global
credit crunch. Re-Remics contain parts that are structured to
guard against higher losses on underlying loans than most CDOs,
allowing holders to sell or retain other sections at lower prices
that can translate to potential yields of more than 20 percent.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/A36AD393-47F1-4FF7-875B-A4068103B870/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>