Word: strata
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...financial milestone was achieved on October 27, 2004 with the birth of Strata 2004-8. If you haven't made arrangements for the five-year anniversary this fall, don't worry. Few people will be celebrating...
...Strata is one of the many so-called toxic assets clogging the nation's financial pathways. What's more, the complicated bond and its ilk are likely to present a significant stumbling block in the government's latest effort to fix our ailing banks. (Read "Why Your Bank is Broke...
...Even among CDOs, Strata is more complicated than most. Unlike other bonds, it is not based on loans, but on bets other loans will go bust. Strata and its ilk were called synthetics, and could make up as much as a third of $1.5 trillion in CDOs issued in the past five years...
...Before explaining the nuts and bolts of Strata's structure, it may be wise to put down your Blackberry, mute your CNBC program and turn down your iPod. This stuff is very tricky, perhaps far more so than any investment should be. That's part of the problem. (See the worst business deals...
...Here's how Strata worked: The original investment (made by hedge funds or other big investors) was $20 million, plus a fee paid to the underwriter, Bank of America, for structuring the bond. Bank of America then took the $20 million and bought some liquid, safe asset, such as Treasury bonds. Those safe bonds then became Strata's collateral...