No Wonder Toxic Assets are Still on the Books

WSJ: Why Toxic Assets Are So Hard to Clean Up

Each time these tranches were mixed together with other tranches in a
new pool, the securities became more complex. Assume a hypothetical
CDO2 held 100 CLOs, each holding 250 corporate loans — then we would
need information on 25,000 underlying loans to determine the value of
the security. But assume the CDO2 held 100 CDOs each holding 100 RMBS
comprising a mere 2,000 mortgages — the number now rises to 20 million!

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