Cdo

• Jun 19, 2026
• risk-management

FRM Handbook Ch 23: Credit Derivatives and Structured Products (Structured Products and CDOs)

Book: Financial Risk Manager Handbook Plus Test Bank
Author: Philippe Jorion
ISBN: 978-0-470-90401-5

The second half of Chapter 23 is where credit derivatives stop looking like insurance contracts and start looking like factory assembly lines. Banks slice pools of bonds into tranches, sell the safe-looking pieces to pension funds, and park the toxic waste in the equity slice. Jorion walks through how these structures work, and more importantly, what cannot change when you repackage cash flows.

• Apr 10, 2026
• structured-finance

Cash CDOs: Balance Sheet, Arbitrage, and How They Really Work

Book: Structured Finance and Insurance: The ART of Managing Capital and Risk Author: Christopher L. Culp Publisher: Wiley Finance, 2006 ISBN: 978-0-471-70631-1

• Mar 22, 2026
• finance

The Big Short Chapter 3: How Can a Guy Who Can't Speak English Lie?

This chapter introduces one of the most entertaining characters in the whole book. His name is Greg Lippmann, he is a bond trader at Deutsche Bank, and he is exactly the kind of person you would never trust with your money. Which is exactly why his story is so good.

• Feb 17, 2026
• finance

Credit Derivatives: CDS, CDOs, and the Products That Blew Up

If you hold a bond and the issuer might default, you want insurance. That is the basic idea behind credit derivatives. You pay someone a regular premium, and if the bad thing happens, they pay you. Chapter 41 of Wilmott’s book walks through the main types of credit derivatives, from simple default swaps to the multi-name products that helped blow up the global financial system in 2008.