This means no cross border sovereign debt (or esoteric instruments, such as collateralized debt obligations).

Investment banks then earn fees for re packaging these securities in tranches of collateralized debt obligations, or CDO s (and sometimes into CDO s of CDO s).

Even so, the explosion in the quantity of collateralized debt obligations and similar securities went far beyond what was needed to sustain mortgage lending.

Collateralized debt obligations (CDOs, mainly tied to mortgages) made a new population of aspiring homeowners supposedly creditworthy by enabling the originating banks to sell sub prime debt to other investors.

CHICAGO It is universally recognized that a key factor underlying the 2007 2008 financial crisis was the diffusion of collateralized debt obligations (CDOs), the infamous special purpose vehicles that transformed lower rated debt into highly rated debt.

The prices of structured securities such as collateralized debt obligations have come down, because the institutional fraud of a multi fold chain of securitizations has been detected.

The just collapsed credit bubble, fueled by so called special investment vehicles, derivatives, collateralized debt obligations, and phony triple A ratings, was built on the illusions of mathematical modeling.

What started with subprime mortgages spread to all collateralized debt obligations, endangered municipal and mortgage insurance and reinsurance companies and threatened to unravel the multi trillion dollar credit default swap market.

To be sure, they will help to prevent banks from using instruments resembling collateralized debt obligations (which banks use to repackage individual loans for placement on secondary markets) to reduce their exposure.

Making the necessary modifications is a delicate task rendered more difficult by the fact that many mortgages have been sliced up and repackaged in the form of collateralized debt obligations. The holders of the various slices have conflicting interests.

Indeed, the much vaunted market for collateralized debt obligations, which divides risks into tranches and places the different risk levels in different places according to the willingness to accept them, has plausibly played a role in boosting asset prices.

Delinquencies, defaults, and foreclosures are now spreading from sub prime to near prime and prime mortgages. Thus, total losses on mortgage related instruments include exotic credit derivatives such as collateralized debt obligations (CDOs) will add up to more than 400 billion.

For years, hundreds of billions of new mortgage backed securities (MBSs) and collateralized debt obligations (CDOs) generated from them were sold to the world to compensate for the lack of savings in the United States and to finance American housing investment.

The investment banks blended these securities into asset backed securities and collateralized debt obligations (CDOs) and sold them on to financial institutions throughout the world. These institutions, attracted by the high rates of return that were promised, invariably neglected the downside risks.

The entire sub prime market is largely a decade old innovation the word sub prime did not exist in any language before 1994 built on such things as option adjustable rate mortgages (option ARM s), new kinds of collateralized debt obligations, and structured investment vehicles.

In order to prevent sinners from getting caught in a debt trap, the fines could take the form of covered bonds collateralized with privatizable state assets.

Someone has to guarantee that they are adequately collateralized.

As such, the debt burden woefully understates the obligations that Greeks have to each other (largely in the form of family obligations).

Finally, solvency rules should be complemented by an obligation that banks issue a substantial amount of non collateralized debt on the order of 100 of their capital that is convertible into equity.

Concerned that many developing countries continue to struggle for a durable solution to their serious debt problems, where continuing debt and debt servicing obligations adversely affect their sustainable development,

Emphasizing the importance of finding a durable solution for those developing countries that have difficulties in meeting their external debt and debt servicing obligations,

Indeed, increased debt servicing obligations resulting from higher interest rates, along with weakening export prospects, ran the risk of reproducing an unsustainable debt burden.

Unlike insurance companies and pension funds, they have no long term debt or future payment obligations.

MUNICH Once upon a time, stocks were risky and collateralized securities were safe.

But, while the debt was highly rated, how could anyone objectively assess unsecured and virtually unenforceable obligations?

This synthetic collateralized debt obligation (CDO) did not finance the ownership of any additional homes or allocate capital more efficiently it merely swelled the volume of mortgage backed securities that lost value when the housing bubble burst.

Nomura Security Co., Ltd. (2004). Arrangement of Korean collateralized bond obligation. Press release (8 December).

Their cash balances are extremely high, interest payments on debt are low, and principal obligations have been termed out.

Some analysts argue that, given guarantees of debt incurred by public corporations, the Greek government s obligations are even higher.

The Government of Iraq must conclude further debt relief agreements and must also find a comprehensive solution to the issue of reparation obligations, which significantly exceed the external debt stock.

At the same time, this swap reduced troubled countries debt payment obligations allowing them to get back on their feet.

Initially a financial crisis, it morphed into a classic public debt crisis after governments stepped in to guarantee banks obligations.

Noting with concern that some highly indebted, middle income developing countries are facing serious difficulties in meeting their external debt servicing obligations,

In contrast to old leftist slogans against repaying foreign debt, Lula s government has hurried to settle all of its IMF obligations in advance.

It took responsibility for obligations that amounted to a multiple of Ireland s national income, driving up government debt to more than 1,300 of GDP.

Think of collateral debt obligations (CDOs) as poisoned sausages, says the economist Nouriel Roubini, with sub prime mortgages as the rat meat in them.

Without prompt solutions to the debt obligations of small and vulnerable economies, the targeted eradication of poverty will remain an elusive Millennium Development Goal.

Honoring all three of those legal obligations simultaneously is impossible if Congress refuses to raise the debt ceiling, but raising the debt ceiling without Congressional approval, though illegal and an impeachable offense, was the least bad choice.

It ended when the highest EU authority, the European Council, officially recognized in late July that Greece does need a reduction in its debt obligations.

Noting with concern that some other highly indebted low and middle income developing countries are facing serious difficulties in meeting their external debt servicing obligations,

The Supreme Civil Court had declared, in 1997, that detention of merchants for commercial debt was permissible only if they wilfully avoided their contractual obligations.

We intend to promote new efforts in matters of foreign debt that transcend our bilateral obligations in the framework of the Heavily Indebted Poor Countries (HIPC) Debt Initiative and to contribute decisively to the solution of the problem of the external debt of these countries with the multilateral financial institutions.

Loans would be provided by other EU countries if necessary, taking the form of covered state bonds collateralized with privatizable state assets.

Today, sovereigns are more often democratically elected governments, but they still borrow. And they still occasionally find themselves in situations in which their debt has become unsustainable and they need outside help to continue to meet their debt service obligations.

Haiti's ability to remain current in its debt service obligations depends on overall macroeconomic performance and sustained economic recovery as well as continued and timely donor disbursements.