Cdo

Discussion in 'Wall St. News' started by cigarno, May 4, 2010.

  1. cigarno

    cigarno

    I still do not get it!!.
    What is meant by a Synthetic CDO short position?

    (1)- Selling the security of the CDO.

    (2)- selling insurance on the referenced Synthetic CDO mortgages?

    In Other words,

    How did IKB ( the German bank) lose money in the Abacus deal :confused: