Question
In 4-9 sentences please explain: How is it possible for risky subprime mortgages to be pooled together and then, miraculously, to become AAA-rated CDO investments?
In 4-9 sentences please explain:
How is it possible for risky subprime mortgages to be pooled together and then, miraculously, to become AAA-rated CDO investments? What is your view on the conflicts of interest in the credit rating industry, considering the fact that credit rating agency is supposed to serve the general public, but is paid by the security issuers.
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
