The list of ninety bonds sank a billion-dollar bet and toppled fortunes
A billion-dollar bet on ninety mortgage bonds, rated one step above junk, is about to pay off. One party at the table knows they will all fail.
The list of ninety bonds sank a billion-dollar bet and toppled fortunes
This episode explores the Abacus 2007-AC1 deal, a synthetic collateralized debt obligation that became the subject of a Senate report and a significant settlement. It examines the financial instrument's structure and the conflicting interests at play.
Event: Abacus 2007-AC1
Date: Late February 2007
Financial Instrument: Synthetic collateralized debt obligation
Settlement: $550…
The skinny
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