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Who Speaks for a CDO ?

…holder could renegotiate the contract with the mortgage servicer. The problem is that, for many CDOs the equity stake is worthless and would remain worthless even if the mortgage servicing…

What to do about CDO ratings II

Robert Waldmann An earlier post on this topic seems to have been eaten by blogger (update it’s back). This post is roughly half roughly retyping. I have two proposals (last…

Mike sends a response to rdan on off-label drugs

…unreasonable cases, but if it is reasonable that the off-label use of the drug might have caused the damage, then the encouraged off-label use would lead to an assumption of…

DeLong, Krugman and Risk Aversion

…Mortgage based CDOs I would like to clothe it right now. I would certainly clothe it, that is buy the CDO, if the expected return on the CDO was above…

Type four win-win trading

…Goldman Sachs claim that people always know there is a short seller in “such trades” refers to synthetic CDOs not all CDOs. One case of someone with exposure to mortgage…