In my MBA class this week, we talked about CDOs and how they were used to bundle sub prime tranches of mortgage backed securities into AAA rated securities because, it was argued, the risks in the tranches were uncorrelated.
This Dilbert cartoon explains the concept beautifully.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
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What's going on with inflation?
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