Singh, Alakh Niranjan; Hossain, AKM Rezaul - In: Economía 34 (2009) 27, pp. 37-56
This paper points out a design flaw in Collateralized Debt Obligation or CDO, one of the heavily traded financial instruments by investment banks. The paper suggests that financial design of CDO was not incentive compatible among the players involved in the production, marketing and investing in...