Collateralized Debt Obligations: Burden Is on Defendants

January 25, 2008
Samuel H. Rudman
New York Law Journal

The recent downturn in the market for mortgage-backed securities and collateralized debt obligations (CDOs) [FN1] has inflicted devastating losses on many investors. Among those hit hardest by the collapse are investors that purchased AAA-rated tranches of CDOs backed in whole or in part by risky subprime mortgage loans that were worth much less than their investment-grade ratings represented.

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