Arnold Williams (notebuyer) wrote,
Arnold Williams
notebuyer

What is that CDO worth?

What is that CDO worth? That question is at the heart of the market problems we're currently facing.

And, as it turns out, there is a way to find out what the "Collateralized Debt Obligation" that people invested in should be worth, after plugging in a few numbers.

The problem, though, is that any good market maker will take that, say, "It's a reasonable guess, but are you BUYING at that price, or SELLING at that price?" And there is where the rubber meets the road: these are now sold in a market which is unsure enough to treat estimates as ceilings.

After reading the Wikipedia article referenced above, the question will occur to some of you: why not invest in things that you understand, instead?
Tags: work
Subscribe

  • The Song of the Villain

    Keynote songs, with their defiant lyrics and rising chords, marked "Frozen", and, more recently, "The Greatest Showman". But I've listened to them…

  • Situation: What do you say?

    You're under 50 years old, in good health. Someone has just asked you whether you are vaccinated, and you say, "No." They get upset. What is your…

  • Moving through ordinary time towards Advent

    Christmas Bells Henry Wadsworth Longfellow I heard the bells on Christmas Day Their old, familiar carols play, And wild and sweet The words repeat…

  • Post a new comment

    Error

    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

    Your IP address will be recorded 

  • 0 comments