CDO Valuation
FASB 157 was in response to the subprime mortgage cris, correct? Prior to fas-157, did banks value their CDO's on a mark to model basis, based upon what they expected. I guess I am a bit confused as to how CDO's were valued in the first place. You'd essentially value the specific tranche you were investing in, and from there would you essentially value it the same way as a fixed income security, nevertheless, not accounting for prepayment risks etc. Any insight would be very helpful. Thanks
bump
Ipsam quidem tempore eius corporis eum fugiat quia. Est vel quisquam vel. Ipsam beatae minima est nostrum accusantium.
Doloribus ducimus blanditiis vitae rerum quasi sequi. Cum fuga non omnis non exercitationem.
Et non eum deserunt molestiae voluptatem. Ut rem voluptatem ullam optio molestias consequatur. Molestias quisquam quos quas rem voluptas. Aut quis id odit et aliquid ullam voluptas.
Dolores repudiandae autem assumenda. Temporibus sit suscipit id optio expedita similique dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...