explanation of what a CDO is has proved extremely popular,
I’m happy to say. Now the WSJ has got in on the act as well, with a
much more detailed (and much less metaphorical) flash-based explanation
one particular CDO got downgraded. Personally, however, I
find the graphic in the accompanying
article easier to understand: it really shows how one tiny
$50 million unrated tranche could help raise $1.125 billion of
BBB-rated debt all the way into AAA territory.