... of AAA- (A-2), AA-, A-, and BBB-rated bonds. The case walks students through all the steps of securitization decision making in a qualitative manner, while at the same time allowing for a quantitative exercise: an evaluation of the risk-returns profile of the proposed CDO's residual tranche...

... to the point of comical. This new CMBS deal represented the first opportunity to buy CMBS backed by loans to multiple borrowers since credit markets had shut the securitization pipeline in June 2008. The offering gave Greenwood a new investment opportunity to suggest to her firm's latest client. She had...

... reading and analyzing the case, students will be able to: Explain how home mortgages are securitized into financial instruments that are traded in public markets Describe how credit default swaps can be used to speculate on the value of an underlying financial instrument Identify potential...