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Interlocking Ownership of CDOs: An Interactive Data Tool

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THE WALL STREET MONEY MACHINE
DailyFeed
ProPublica has launched an amazing new interactive tool, which allows people to see which CDOs owned pieces of each other, which banks underwrote the deals, and which "supposedly independent managers" were involved in the CDOs.

The investigative journalism group combed through all available financial data to find "85 instances during 2006 and 2007 where two CDOs bought pieces of each other's unsold inventory. These trades, which involved $107 billion worth of CDOs, approximately a fifth of the market, underscore the extent to which the market lacked real buyers. Often the CDOs that swapped purchases closed within days of each other. The incestuous trades made the CDOs more intertwined and thus fragile, accelerating their decline in value that began in the fall of 2007 and deepened over the next year."

Click on the image below or HERE to access the interlocking CDO tool--you can click on a CDO to see the other CDOs it swapped unsold pieces with, click on an underwriting bank to see which banks’ CDOs had cross-ownership, or click on the bank tab to see how many instances of cross-ownership there were for any given bank:

POSITION:  No positions in stocks mentioned.
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