Episode Details
Back to EpisodesWere CDOs Financial Engineering or Mass Destruction?
Episode 2429
Published 2 weeks, 3 days ago
Description
A collateralized debt obligation (CDO) is a structured financial product that pools loans into tranches based on risk. While designed to diversify debt, the heavy inclusion of subprime mortgages and flawed credit ratings fueled the 2008 financial crisis and market crash.