FRM: Goldman Sachs Abacus SCDO

[@ChewockaFlockaFlame]

I'm currently studying for the CFA and this video made the whole concept of CDO's so much clearer. Thank you for sharing!

[@radulac000]

This video changed My life!

[@frankbertola3662]

Thankyou for this insight as i here in Australia fell victim to a bank namely the ANZ via one of its agent iniciators Australian Wheat Board (AWB oil for food). ANZ as the ultimate beneficiary both bought and sold CDS on this lending structure then in 2009 created a massive swath of defaults by means of loan book restructure in actual fact potentially defaultig and liquidating 45% of the engaged tranches being 4,500 clients. Being mainly farmers the base asset (farmland) was added onto the super tranches at minimal cost as in liquidation (fire sale). I would like to forensically pick this apart as it not only invoved myself but wider corruption being AWB/ANZ and the Oil For Food scandal.

[@kidkid123123123]

What's the difference btw the 2 super senior tranches?

[@gregoriobontoux7942]

Dude, thank you for real I need a teacher like you :)

[@bionicturtle]

@Shebadad Hey, i agree with you, so how can i really explain the behavior? Better ratings for some of the senior tranches are justified by diversification from a DEFAULT perspective, but these ratings are utterly laughable. Again, above the AAA, they had 55% better (!?) than AAA; utterly indefensible....as to why GS "needed" Treasury money, well, I have no plans to cover politics :)

[@alainportant6412]

no, you will cover politics you coward

[@yookayman]

David - this was interesting. Thanks very much.

[@eternalko]

Great video. I think you could potentially answer 2 more questions. 1) Who was by the end of the day was holding B, C, D tranche? 2) What was the real cash flow. How much Paulson paid in principal. How much Aca paid for an AAA tranche. How much ACA fot the SS 50/100 tranche. And others. Great video. Thank you!

[@ciboperlamente]

I think the insurance premium of the credit default swap should go to the insurance company AIG

[@KINGATNO2]

goldman went long just a little bit portion of it,then well it got the loss ,he could say"hey,i did lose money!!,than how could I knew that it was going to collapse" on the other hand,Goldman got most of the profit from the CDS fees.

[@cosmosgato]

Yeah that sounds fair and clear but was Paulson the guy who constructed inclusion with Goldman the time bomb CDOs?

[@johnking8877]

can a normal CDO be partially funded?

[@bionicturtle]

Thank you for watching! David is spending a great deal of time in the forum with the FRM exam coming up next month so he may not be able to answer questions here in KZbin right away. You may be able to find an answer to your question in our forum here: www.bionicturtle.com/forum/. :)

[@eternalko]

Great!

[@jls0037cslewis1]

I notice you did not name the party engaging in cds with the spy. It could be titled Goldman Sachs, no? Never mind, I see the nuance, Paulson and company. Lol

[@xf3445]

What is the purpose for the US Treasury to do this? Why can they just speculate on derivatives like this?

[@ptpalex]

It is not the US Treasury. It's Paulson as in Paulson & Co - the hedge fund that successfully wagered that the housing market would crash. This type of transaction featured in "The Big Short" movie (where Christian Bale played the role of a similar hedge fund owner - Michael Burry).

[@xf3445]

+alex potop Oh! Thank you!!