Risk Analysis of Collateralized Debt Obligations

  title={Risk Analysis of Collateralized Debt Obligations},
  author={Kay Giesecke and Baeho Kim},
  journal={Operations Research},
Collateralized debt obligations, which are securities with payoffs that are tied to the cash flows in a portfolio of defaultable assets such as corporate bonds, play a significant role in the financial crisis that has spread throughout the world. Insufficient capital provisioning due to flawed and overly optimistic risk assessments is at the center of the… CONTINUE READING