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risk-return of CDO squared

Posted: June 20th, 2006, 8:13 am
by fleer
Low levels of risk are associated with low level returns, however, does anyone here know that why low levels of risk are associated with high level returns in CDO^2 transactions? Thank you.

risk-return of CDO squared

Posted: October 28th, 2006, 8:21 am
by DoctorJo

risk-return of CDO squared

Posted: October 28th, 2006, 8:22 am
by DoctorJo
The answer is leverage!