Inquiring Mind's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/158917/comments http://seekingalpha.com/article/77791-wall-street-breakfast-must-know-news?source=feed#comment-169947 169947 Mon, 19 May 2008 09:00:49 -0400 http://seekingalpha.com/article/74062-capital-source-analysis-and-valuation?source=feed#comment-156435 156435 Fri, 25 Apr 2008 08:59:55 -0400 http://seekingalpha.com/article/72517-alesco-financial-gem-in-the-garbage-pile?source=feed#comment-152128 152128 Thu, 17 Apr 2008 09:20:45 -0400 http://seekingalpha.com/article/67832-back-to-the-future-in-the-credit-derivative-time-machine?source=feed#comment-124859 124859
More to the point, another reason we haven't seen the end of this is that the major CDO underwriters often held onto large chunks of the supersenior classes of their CDOs and used those bonds as collateral for other deals -- swaps, loans, etc. -- for which there's a certain collateral rating requirement. So when the formerly AAA supersenior CDO class gets torched, they have to pull it back and put up other collateral in the same face amount, forcing them to book the loss on the CDO. This process is still just beginning to happen as the AAA CDO classes get downgraded.]]> Mon, 10 Mar 2008 18:10:13 -0400
More to the point, another reason we haven't seen the end of this is that the major CDO underwriters often held onto large chunks of the supersenior classes of their CDOs and used those bonds as collateral for other deals -- swaps, loans, etc. -- for which there's a certain collateral rating requirement. So when the formerly AAA supersenior CDO class gets torched, they have to pull it back and put up other collateral in the same face amount, forcing them to book the loss on the CDO. This process is still just beginning to happen as the AAA CDO classes get downgraded.]]>