question on CDO's

Discussion in 'Trading' started by Warrior4g, Jan 16, 2008.

  1. i hear about hedge funds shorting CDO's, how is that actually done?
    thanks guys
  2. Through a broker most probably, like everyone else. A Hedge Fund is nothing more than an entity (Partnership, Corporate, Trust, etc) managing a pool of money. This "entity", like anyone else (you and I are also entities, i.e. "individuals"), has to have a bank account for trading and have to trade through brokers (most of the time).

    Unless you are asking for something else, I hope this helps.
  3. Mvic


  4. Agronox


    One way would be to buy protection (credit default swaps) against the CDO.
  5. Here is a primer on a typical transaction.