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Higher Demand of CDO in Investors of What Role Did Securitization Play in the 2008 Financial Crisis?

Category: Financial Reporting Paper Type: Report Writing Reference: N/A Words: 150

        The financial crisis in 2008 also results in the higher prices of CDO in the investors.  Some economist note that there is a lot of change happens in market of CDO. The property support CDOs has transfer from housing mortgages to marketable mortgages. The business real land did not have as a great deal of a recession as compared with the real estate built-up. There is seemingly less risk connected with business mortgages. Some investors in the market were also aware of the risks associated with CDOs when the demand in the market rises. They are, consequently, priced consequently. In calculation, there are critical requirements of the market in place to make sure counterparties are capable of fulfilling their responsibilities under the agreements condition.

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