File:CDO Diagram - Simplified.png
Original file (960 × 720 pixels, file size: 9 KB, MIME type: image/png)
Captions
Summary
[edit]DescriptionCDO Diagram - Simplified.png |
English: CDO Cash Flow Diagram - Simplified In simple terms, think of a CDO as a promise to pay cash flows to investors in a prescribed sequence, based on how much cash flow the CDO collects from the pool of bonds or other assets it owns. If cash collected by the CDO is insufficient to pay all of its investors, those in the lower (equity) layers (tranches) suffer losses first. The different layers typically received different credit ratings from rating agencies and different interest yields.[1] This diagram illustrates the cash flows of a CDO once it has been created. It does not illustrate the initial investment from the investors that the CDO/SPV (Special purpose vehicle) uses to acquire bonds and other assets. The diagram also does not show various intermediaries that may be involved, such as mortgage servicers that collect mortgage payments, for example. It basically shows how debtor payments are accumulated and then distributed to investors in various tranches in a priority sequence. One analogy is to think of the cash flow from the CDO's portfolio of securities (say mortgage payments from mortgage-backed bonds) as water flowing into the cups of the investors in the senior tranches first, then mezzanine tranches, then equity tranches. If a large portion of the mortgages enter default, there is insufficient cash flow to fill all these cups and equity tranch investors face the losses first. References: Similar diagrams: |
Date | 29 December 2010 (original upload date) |
Source | I (Farcaster (talk) 03:17, 29 December 2010 (UTC)) created this work entirely by myself. |
Author | Farcaster |
Licensing
[edit]- You are free:
- to share – to copy, distribute and transmit the work
- to remix – to adapt the work
- Under the following conditions:
- attribution – You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- share alike – If you remix, transform, or build upon the material, you must distribute your contributions under the same or compatible license as the original.
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled GNU Free Documentation License.http://www.gnu.org/copyleft/fdl.htmlGFDLGNU Free Documentation Licensetruetrue |
Original upload log
[edit]Transferred from en.wikipedia to Commons by Calliopejen1 using CommonsHelper.
- 2010-12-29 03:17 Farcaster 960×720× (9279 bytes) {{Information |Description = CDO Cash Flow Diagram - Simplified |Source = I (~~~~) created this work entirely by myself. |Date = ~~~~~ |Author = ~~~~ |other_versions = }}
File history
Click on a date/time to view the file as it appeared at that time.
Date/Time | Thumbnail | Dimensions | User | Comment | |
---|---|---|---|---|---|
current | 19:31, 20 December 2011 | 960 × 720 (9 KB) | File Upload Bot (Magnus Manske) (talk | contribs) | {{BotMoveToCommons|en.wikipedia|year={{subst:CURRENTYEAR}}|month={{subst:CURRENTMONTHNAME}}|day={{subst:CURRENTDAY}}}} {{Information |Description={{en|CDO Cash Flow Diagram - Simplified<br/> ==Explanation== In simple terms, think of a CDO as a promise to |
You cannot overwrite this file.
File usage on Commons
There are no pages that use this file.
File usage on other wikis
The following other wikis use this file:
- Usage on bn.wikipedia.org
- Usage on en.wikipedia.org
- Usage on en.wikiquote.org
- Usage on vi.wikipedia.org
Metadata
This file contains additional information such as Exif metadata which may have been added by the digital camera, scanner, or software program used to create or digitize it. If the file has been modified from its original state, some details such as the timestamp may not fully reflect those of the original file. The timestamp is only as accurate as the clock in the camera, and it may be completely wrong.
Horizontal resolution | 37.8 dpc |
---|---|
Vertical resolution | 37.8 dpc |
Software used |