Great Article on Synthetic CDOs – Turning $38m loss into $280m

Download 2010-5-3 Senate's Goldman Probe Shows Toxic Magnification – WSJ.com

n one case, a $38 million subprime-mortgage bond created in June 2006 ended up in more than 30 debt pools and ultimately caused roughly $280 million in losses to investors by the time the bond's principal was wiped out in 2008, according to data reviewed by The Wall Street Journal.

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