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Study Shows AAA CDOs Were Structured to BBB Support

Mar 5, 2013 2:39:10 AM

A paper published in the Journal of Finance shows that AAA tranches were inflated 12.1% over published guidelines and that, on average, the AAA tranches analyzed were structured to BBB support levels. (JoF)

For implications of this rating inflation (by S&P), see this Bloomberg article.

See our previous coverage on CDOs here and here.

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Topics: Bloomberg, litigation, investments, CDO, Journal of Finance, fixed income, S&P

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