Collateralized debt obligation overview | Finance & Capital Markets | Khan Academy #Finance

43 thoughts on “Collateralized debt obligation overview | Finance & Capital Markets | Khan Academy #Finance”

1. so how time trench is different from collaterlized debt obligation ?

2. What's the process of each and how long it takes to get converted cash?

3. can an individual interested in investing hire a ratings agency?

4. Me

5. I can't believe it can be this good

6. This video really was great

7. that would be owned

8. that would be owned

9. You try to give the video more brightness it will be great if you do

10. 동영상에 있는 상당히 불쾌한 이미지

11. Clear and precise, thank you.

12. Bunch of crooks new they will be bailed out by the taxpayers

13. Thankyou …!

14. MBS had a rating as well. IDK what your talking about.

15. 3:08 Hmmm, you sure you needed to correct yourself there Sal? Lullll

16. You're Awesome 👌

17. By far the best explaination i have seen.

18. Well explained.

19. Really helpful. Thank you Sir.

20. wat

21. I say this all the time, but these videos are so clear they make me angry. I’ve been trying to grasp the idea of what a tranche is for hours and still didn’t get it. This made it clear in 4 min.

22. THAAAANKS MAAN – couldnt get it for hours and now I understood it in 4 mins 💪🏽

23. thanks.

24. I studied engineering in college, and very good at math, have a strong logical side to my brain, but every explanation I’ve seen of this type of financial instrument is way too fast and skips over details that make it hard to understand the very heart of the issue.

25. SAL IS THE GOAT

26. Speak slowly

27. I've got an interview next week and this has been super helpful. The visual examples put everything into place. Thanks!

28. There are a few things I don't get. Firstly, what does the 8% yield part mean intuitively? Secondly, are the pension fund and the hedge fund buying the mortgage-backed securities from the special purpose entity?

29. So what you're telling me that CDOs are still being traded but under the 'tranche' name?
    Can anyone tell me what ultimately happens to wealth in a default? Does it just vanish, or is it ALWAYS recycled in some form or fashion?

30. Unfortunately many of the ratings agencies became chained to the will of the CDO makers.

31. Yea. the big short. Most of it was right… The synthetic CDO was really what brought the banks to their knees….The govt. then bailed out the banks they wanted like Chase, Citi, Morgan S, Goldman, AIG was later. Lehman and Bear..straight to the grave. Wamu, and Wachovia gone.

32. I read through the whole wikipedia article of mortgage backed securities and I couldn't find something similar to your explanation

33. how is this separation into tranches ANY different than creating 3 individuals MBSs?

34. Sal Khan should have been in the bathtub instead of Margot Robbie.

35. This isn't a CDO. CDOs are when you take the bad debt and create a layered security which is rated triple A in parts. Here Khan has just described a Tranched MBS.

36. excellent presentation!

37. who came here after watching the big short

38. Sorry to say that, but that isn't a CDO yet. It still is just a ABS/MBS.

39. Awesome video. Explains the CDO/CMO very well. Saved me reading the chapter to understand the concept. 

40. its all like in a movie "the inside job"

41. Holders of Equity "get played" Haha. Alarmingly accurate Freudian slip!

42. man do videos on USABO…..

43. Here is the catch. the rating company could be involved in the CDO's like moody. they give it higher rating then it should. that way it allows the pension fund manager to invest in this unregulated S.P.E.

    I think thats why fanny and freddie have 3 trillion in real estate foreclosures still unsold on there books. they would collapse the market to its true level if they put them up for sale. so its allowing the senior to get paid first then it goes up for auction.

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