Skip to main content
Sep 30, 2007

Cars can fill the sub-prime hole for bankers

A refinement of collateralized mortgage obligations is proposed: the ‘collateralized recently owned auto promise’, or CRAP

The continuing tsunami of Chinese cash flooding into the global financial system has helped create an insatiable demand for new financial instruments that offer long-term security and steady returns. The banking sector rose to the challenge with characteristic ingenuity by inventing collateralized mortgage obligations (CMOs), the financial equivalent of quantum indeterminacy. Money managers, bankers and other investors rapidly seized upon CMOs before the idea suddenly became unfathomably unfashionable

To continue reading you need an active subscription

  • Quarterly issues of IR Magazine
  • Unlimited Articles online
  • Newsletter
  • Investor Perception Studies – Europe, US, Canada and Asia
  • Strategy guides
  • Whitepapers
  • Benchmarking reports
From $995*