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Practical Applications

Practical Applications

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Practical Applications of The Role of ABS CDOs in the Financial Crisis

Larry Cordell, Greg Feldberg and Danielle Sass
Practical Applications 8 (2) DOI: https://doi.org/10.3905/pa.8.2.387
Larry Cordell
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Greg Feldberg
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Danielle Sass
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Article Information

vol. 8 no. 2 1-6
DOI 
https://doi.org/10.3905/pa.8.2.387

Published By 
Pageant Media Ltd
Print ISSN 
2329-0196
Online ISSN 
2329-020X
History 
  • Published online June 12, 2020.

Copyright & Usage 
© 2020 Pageant Media Ltd

Author Information

  1. Larry Cordell
  2. Greg Feldberg
  3. Danielle Sass
  1. To order reprints of this report, please contact David Rowe at D.rowe{at}pageantmedia.com or 212-224-3045.
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Practical Applications
Vol. 8, Issue 2
31 Oct 2020
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Practical Applications of The Role of ABS CDOs in the Financial Crisis
Larry Cordell, Greg Feldberg, Danielle Sass
Practical Applications Oct 2020, 8 (2) DOI: 10.3905/pa.8.2.387

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Practical Applications of The Role of ABS CDOs in the Financial Crisis
Larry Cordell, Greg Feldberg, Danielle Sass
Practical Applications Oct 2020, 8 (2) DOI: 10.3905/pa.8.2.387
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  • Article
    • Practical Applications Summary
    • Overview
    • Practical Applications
    • Key Definitions
    • Discussion
    • THE SOURCE OF RISK: SUBORDINATED PLMBS TRANCHES
    • CONCENTRATING THE RISK: SELLING SUBORDINATED PLMBS TRANCHES TO ABS CDOS
    • COMPOUNDING THE RISK: CROSS-SELLING NONPRIME ABS CDO TRANCHES TO OTHER CDOS
    • IGNORING THE RISK: FIRMS AND REGULATORS FAIL TO LIMIT DEBT OR IMPOSE CAPITAL REQUIREMENTS
    • THE CRISIS: CONCENTRATED RISK CAUSES CATASTROPHIC LOSSES TO UNDERCAPITALIZED AND OVERLEVERAGED FIRMS HOLDING ABS CDOS
    • THE AFTERMATH: HAVE WE LEARNED OUR LESSON?
    • Larry Cordell
    • Greg Feldberg
    • Danielle Sass
    • Footnotes
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