Collateralized Debt Obligation and Sub-prime Mortgage Crisis Correlation Research

• Main Authors: Tai-Jen Wang, 王泰人
• Other Authors: Tzu-Kuan Shiu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/11726440786582215815

碩士 === 國立中央大學 === 財務金融學系碩士在職專班 === 96 === With the rapid change of financial environment and emerging investment commodities, the potential risk of these various commodities has been increasing. As a result, it is an urgent task to cope with such trend, understand the essence of investment commodities and manage investment risk effectively. Sub-prime mortgage crisis in the US has urged investors to review global credit market once again. Under the trend of globalization and financial innovation, CDO has become the most prominent commodity that totally alters the distribution of credit risk and financial market. CDO derivatives are still new commodities in Taiwan while developed countries such as Europe, the US and Japan have already has sound evaluation mechanism and sales channel. But they can’t avoid the turmoil of sub-prime mortgage crisis. As a result, this thesis focuses on the development t of securitized commodities, the root cause of sub- prime mortgage crisis and the investment risk of CDO. Finally, three recommendations will be provided in the discussion and conclusion sessions. 1.Security issuers should publish related statistic data regularly in order to establish a model assessing commodity price and re-investment risk accurately. 2.Besides considering the cost of raising capital, financial agencies should participate the development of securitization and learn its know-how. Through such practice, financial agencies can find their own niches. 3.It is highly recommended that we should develop a healthy and sound secondary market for securitized commodities to circulate.