CDO schematics


Look at this thing. That is the "architecture" of a CDO. Does it remind you of object design a little bit :)

Comments

Gandalf said…
Would be good to visualize this over time (i.e what cracked first , then what are dependencies craked and now who is going to collapse - like the monoline insurers are next)
November 14, 2008 at 12:40:00 PM PST
Julien Viet said…
Do they have design patterns?
November 14, 2008 at 10:51:00 PM PST
Jean-Luc Vanhulst said…
"Abstract Factory" comes to mind, and "Lazy init", "Chain of responsibility" and finally, we're all Observing this stuff in great amazement ... right?
November 15, 2008 at 3:52:00 PM PST
adt43wt342 said…
what cracked first is that the whole SPV2 structure was based on air by the time this machine ran twice on a original pool of subprime. Meaning that the whole ownership structure of SPV2 was actually zero. SPV2 was bankrupt.

If I read correctly, the monoline is indeed exposed in the SPV1 structure.

So SPV1 is hit, if SPV2 is bankrupt.

The whole SPV2 Equity of SPV2 was called "toxic assets",
November 16, 2008 at 3:10:00 AM PST
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