LEARN: Understanding Credit Products – Part 2

Posted: November 5, 2013 in Debt
Tags: , , ,

In this second part of the LEARN: CREDIT PRODUCTS series, we will explore the topic of Synthetic CDOs, what they are and how they work, including their different uses and types.

As a general backdrop, it is worthwhile understanding ‘synthetic’ products, by their nature, they seek to replicate the properties of an underlying investment and therefore allow the investor to profit (or loose) without actually holding a position in a ‘real’ asset. Just one of the many concepts and varieties that allow the kind of financial alchemy that exists today – meaning anything can be CREATED as needed….(hence islamic fraud/finance)

Synth CDO

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