The Story of the CDO Market Meltdown

[Andy Nguyen]

This is a paper by a student at Harvard writing about the CDO meltdown. Michael Lewis said in his new book that this is the best thing written on CDO meltdown. This was mentioned on a WSJ blog.

Michael Lewis? Read the Harvard Thesis Instead! - Deal Journal - WSJ

 

[DanM]

She's hot ......

 

[Joy Pathak]

^^^ Hahaha. I was in the process of posting the exact same thing.

I would let her collateralize my debt anytime.

 

[bob]

Uh...yeah.
Anyway, yes her point that the CDO^n = 1, 2, 3,... market existed primarily to use excessive supply of mezz bonds to meet the demand for IG bonds is spot-on.

It is also worth noting that the primary thrust of most government intervention since the bubble began to deflate has been to preserve the capital of debt investors to the greatest degree possible. It follows that the demand is still out there to be met.

Did anyone else notice that Citigroup is doing the first CLO deal since the blowup? Meet the new market, same as the old market:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aywTa0.RvuA4&pos=5

 

[Andy Nguyen]

Anyone knows her contact email, please send me a message. I'd like to interview her for an article.

 

[Dibbs]

http://twitter.com/akbarnetthart
boom. pay me!

 

[Andy Nguyen]

Good work, Dibbs.
Let's see if she answers to our media inquiry.

 

[Joy Pathak]

She has some interesting tweets.

 

[Dibbs]

She posts on the seekingalpha.com , hold on, here's the post : The Dummies Guide to Valuing a CDO: Reference Barnett-Hart’s Thesis -- Seeking Alpha

If you're registered, I believe you can send a PM.

 

[Andy Nguyen]

Dibbs,
Twitter works. Got a direct message from AK with her email and phone number.

Stay tuned to our interview with AK.