Investors transacting in CDOs must hurdle a variety of different obstacles in order to succeed. Janet Tavakoli examines the main hazards investors should consider when trading these credit instruments and explains how
banks can potentially mislead investors and regulators when they sell tranches of synthetic CDOs.
Rating agencies play an important role in the evaluation of structured finance deals. But do the agenies provide consistent and reliable ratings for the credit risk community? Do they use different approaches when evaluating synthetic CDOs? And what purpose do these ratings really serve? Janet Tavakoli investigates.
Whether you are a borrower, an investor or a risk manager, writes Janet Tavakoli, the current subprime mortgage market is rife with danger.Tavakoli discusses the impact that predatory lending practices have had on borrowers and investors, explores the role investment banks have played in the rise and fall of subprime ... click here for more details.