Two fantastic video’s on CDOs and Credit Default Swaps

Two videos by Paddy Hirsch of Marketplace, that are very worth watching if you want to know what CDOs or Credit Default Swaps are.

The first: Uncorking CDOs (Collateralized Debt Obligations)

And the second: Credit Default Swaps

via Presentation Zen



Jason 2008-10-08 06:04:36

Do you have a Private mortgage insurance (PMI) policy? If you do your PMI insurer has passed along their risk by buying a credit default swaps (CDS) to protect them in the event you have your home that your home is taken away from you. CDS and PMI are the same thing. Make people wanting to buy a home put at least 20% down if you don’t like them.

Simeon Pilgrim 2008-10-08 08:52:02

Cheers Jason, that makes sense.

It sounds if you think I’m against CDS, which I’m not, but like all short selling, if everybody does it, then you have a lot of dominoes ready to fall.

Really I just found these explanations very accessible. So wanted to share them.

Conor 2008-10-07 15:10:31

See? The most intelligent people are from Northern Ireland… ;-)

Simeon Pilgrim 2008-10-07 16:31:25

I do not judge people on their nation of origin, instead focus on the merit of their actions. *potato*