Strategies for CDOs

DeltaMirror · August 23rd, 2007, 8:16 pm

Hi everybody,I know the basics of trading derivatives (such as dynamic hedging,etc..) and I was wondering how that can be applied to CDOs.In particularly, I would like to know if:-it's possible to go short on a CDO-if indices are used as an hedge (far from perfect,though)Finally,do you think CDo trading will keep on being a lucrative activity as it has been so far?Any refence is also very appreciated.Thanks a lot for your help

Wibble · August 24th, 2007, 7:44 am

read the articles on correlation trading from merrill's, lehmans etcseveral of them have been posted on this forum in past threads