Collateralised loan obligations: why these obscure products could cause the next global financial crisis
- Written by Daniel Tischer, Lecturer in Management, University of Bristol
On the money?Sean Pollock/Unsplash, CC BY-SAAt the heart of the global financial crisis of 2007-09 was an obscure credit derivative called the collateralised debt obligation (CDO). CDOs were financial products based on debts – most notoriously, residential mortgages –which were sold by banks to other banks and institutional investors....