2 ms·
Well, to approximate a synthetic CDO squared, you'd first put all the moldy strawberries in a new basket, label it "Strawberries", send it to the rating agency
by patio11 10y ago
Well, to approximate a synthetic CDO squared, you'd first put all the moldy strawberries in a new basket, label it "Strawberries", send it to the rating agency where it would be rated AAA American strawberries, and then sell firms their choice of the least, middling, or most risky slices of the basket of "AAA American strawberries."
- ethbro 10y agoYou forgot about also shorting the eventual result of those re-packaged strawberries by buying options on bismuth subsalicylate.
- Scoundreller 10y agoI'd be more worried about the molds (and their byproducts) being carcinogenic (e.g. Aflatoxins)