Collateralized Debt Obligation (CDO)

This module introduces collateralized debt obligations (CDOs), highlighting their significance in the financial system:

• Definition and structure of CDOs.
• The relationship between CDOs and mortgage-backed securities.
• The risks associated with investing in CDOs.

Participants will learn how CDOs contributed to the credit crisis and their overall impact on financial stability.

Course Lectures

• Introduction to Mortgage-Backed Securities

  Salman Khan

  Play

  This module serves as an introductory exploration of mortgage-backed securities. You will learn:

  • What mortgage-backed securities are and how they function.
  • The role they played in the credit crisis.
  • The various types of mortgage-backed securities available in the market.

  Understanding these securities is crucial for grasping the complexities of financial markets and the events leading up to the credit crisis.

• Mortgage-Backed Securities Part 2

  Salman Khan

  Play

  This module continues the discussion on mortgage-backed securities, focusing on:

  • Advanced concepts related to mortgage-backed securities.
  • The implications of risk assessment in the housing market.
  • How these securities impacted investors and the economy.

  Participants will gain deeper insights into the mechanics and risks associated with these financial instruments, further illuminating their role in the credit crisis.

• Mortgage-Backed Securities Part 3

  Salman Khan

  Play

  This module delves deeper into mortgage-backed securities, covering topics such as:

  • The structure and types of mortgage-backed securities.
  • The historical context of their rise in popularity.
  • Case studies illustrating their influence on the credit crisis.

  By exploring these areas, participants will develop a comprehensive understanding of how mortgage-backed securities contributed to the financial landscape during the crisis.

• Collateralized Debt Obligation (CDO)

  Salman Khan

  Playing

  This module introduces collateralized debt obligations (CDOs), highlighting their significance in the financial system:

  • Definition and structure of CDOs.
  • The relationship between CDOs and mortgage-backed securities.
  • The risks associated with investing in CDOs.

  Participants will learn how CDOs contributed to the credit crisis and their overall impact on financial stability.

• Bailout 13: Does the Bailout Have a Chance of Working?

  Salman Khan

  Play

  This module examines the concept of bailouts during the credit crisis, focusing on:

  • The rationale behind government bailouts.
  • Assessment of their effectiveness in stabilizing the economy.
  • Case studies of major bailouts during the crisis.

  Participants will critically analyze whether the bailouts were successful and the lessons learned for future economic interventions.

• Credit Default Swaps 1

  Salman Khan

  Play

  This module provides an introduction to credit default swaps (CDS), focusing on their role in the financial markets:

  • Definition and function of credit default swaps.
  • How CDS relate to mortgage-backed securities and CDOs.
  • The potential risks associated with these financial instruments.

  Participants will gain insights into how credit default swaps can influence market stability and contribute to systemic risks.

• Credit Default Swaps 2

  Salman Khan

  Play

  This module explores the systemic risks associated with credit default swaps, emphasizing:

  • The concept of financial weapons of mass destruction.
  • Case studies demonstrating the risks posed by CDS.
  • Potential regulatory responses to mitigate these risks.

  Participants will learn about the implications of systemic risk in financial markets and how credit default swaps can exacerbate economic downturns.

• Wealth Destruction 1

  Salman Khan

  Play

  This module discusses the concept of wealth destruction, focusing on:

  • How economic bubbles lead to significant wealth losses.
  • The historical context of wealth destruction in past crises.
  • Strategies to mitigate the impact of economic bubbles.

  Participants will analyze the relationship between market behavior and wealth destruction, gaining insights into preventing future crises.

• Wealth Destruction 2

  Salman Khan

  Play

  This module continues the discussion on wealth destruction, emphasizing:

  • Real-world examples of wealth loss during economic downturns.
  • The psychological impact of financial crises on investors.
  • Long-term effects of wealth destruction on economies.

  Participants will explore the broader societal implications of wealth destruction and the importance of informed investing.