IDEAS home Printed from https://ideas.repec.org/a/cpn/umkanc/2010p141-158.html
   My bibliography  Save this article

Market of CDO structured products in terms of world financial crisis

Author

Listed:
  • Michal Buszko

    (Wydzial Nauk Ekonomicznych i Zarzadzania UMK)

Abstract

Collateralized debt obligations (CDO) are new, innovative products available to institutional investors on the global financial markets. Their development is strictly related to the subprime loans expansion. In the recent years CDO have become a financial tool of transferring worldwide a risk of American mortgage loan market. In fact, due to CDO such transfer was enormous and uncontrolled. As CDO are not transparent nor they are traded at stock exchange, their valuation and performance assessment are very difficult. In practice, very fast growth of subprime loans in US boosted development of CDO on global financial market. On the other hand, the mentioned structured products supplied capital to subprime segment, increasing the amount of non-conforming loans and hence the risk level in the global financial sector. Because CDO played significant role in the credit risk proliferating and generation of enormous losses among biggest investment and commercial banks, the aim of this paper is to present the idea, nature and mode of functioning of CDO. Also, the paper describes the CDO market in terms of world financial crisis.

Suggested Citation

  • Michal Buszko, 2010. "Market of CDO structured products in terms of world financial crisis," Acta Universitatis Nicolai Copernici, Ekonomia, Uniwersytet Mikolaja Kopernika, vol. 41, pages 141-158.
    • Handle: RePEc:cpn:umkanc:2010:p:141-158
    as

    Download full text from publisher

    File URL: http://www.aunc.ekonomia.umk.pl/Pliki/2010/11_Buszko.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpn:umkanc:2010:p:141-158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Miroslawa Buczynska (email available below). General contact details of provider: http://www.wydawnictwoumk.pl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.