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there's no difference. they weren't priced correctly is a perfectly reasonable thing to say, and synonymous with they lied about their level of risk.
by shrewduser 11y ago
there's no difference.
they weren't priced correctly is a perfectly reasonable thing to say, and synonymous with they lied about their level of risk.
- jevgeni 11y agoCDO's are huge and complicated deals. All the little details are documented in the prospectus. Granted it's 700 pages long on average, but maybe people shouldn't be buying 2-3 billion USD securities if they don't have the capacity to understand and model them properly.
- shrewduser 11y agothere aren't many humans who can grok that kind of info and truly understand it, that's why they were supposed to be rated accurately by ratings agencies.