What's the Collateral Today - and Tomorrow?
Secured Lender, The › Vol. 63 Nbr. 6, November 2007
Linked as:
Summary
In financial markets, collateralized debt obligations (CDOs) are a type of asset-backed security and structured credit product. CDOs serve as an important funding vehicle for portfolio investments in credit-risky fixed-income assets. But right now they are faced with a strange problem. Without liquidity and with no ability to judge the true value of an asset, it appeared that there would be many bankruptcies. The US in particular and its economic allies in Europe have emerged with the greatest concentration of economic strength and the USA is now described as the "only superpower". The essence of this power is intellectual capital. Now the asset-based lending industry is slowly but surely recognizing that there are assets, not necessarily up front and in their face, but assets nonetheless, that can be used as collateral. Recent press releases indicate that institutions are reviewing options and shifting focus to private equity deals in emerging markets to circumvent the current credit crisis.
See the full content of this document
Extract
What's the Collateral Today - and Tomorrow?
Collateral, especially within the commercial finance environment and banking, has traditionally been associated with secured lending or asset-based lending. Now, it has become an arrangement to secure trade transactions, sometimes referred to as capitalized debt obligations. In financial markets, collateralized debt obligations (CDOs) are a type of asset-backed se...
See the full content of this document
Sponsored links
