Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bloomberg Customers

Magazine

From CDO to Credit Crunch


The Bear Stearns hedge funds became central players in the mortgage mess. Here's how:

• Bear raised $14 billion from four deals and attracted a new class of investors: money-market funds

• The funds' managers developed a CDO that sold short-term debt, giving buyers a guarantee from banks

• Its innovative CDO sparked copycats, including structured investment vehicles, many of which have blown up

• When the Bear funds imploded, investors stopped buying CDO debt, forcing banks to make good on refunds

• Such investments collected $400 billion and bought subprime securities, pumping up the real estate market


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus