I’m not sure the market structure now, but I suspect yes. For products like these, there isn’t enough demand from a retail trader perspective. There might be an ETF which assembles CDOs and CDSs, but I don’t know the market An ISDA is a somewhat standardized legal agreement between 2 Cancer Awareness GIVE Cancer The Boot T-Shirt counterparties to trade over-the-counter derivatives. Nowadays you won’t find a bank willing to trade derivatives without an ISDA+CSA. I do not believe CDOs qualify as derivatives so you probably don’t need an ISDA to trade these Vanguard actually has an ETF for mortgage backed securities. Not exactly a CDO but kinda like buying a bond ETF vs buying an actual bond, I would think.
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If you invest in a allocation fund or a pension/target/mutual fund you most likely already invest in these things. They are called mbs, clo, cmbs et cetera. Due to treasuries not earning shit atm a lot of those managers have invested in those things to pimp up carry profits. Cancer Awareness GIVE Cancer The Boot T-Shirt My mind immediately jumps to some of the large institutions that went bankrupt or largely so: Lehman Brothers, Bear Stearns, AIG. Some European countries had a lot of money tied up in these shitty bonds. Ireland, Iceland, Spain. And then I think about the average people who had no direct stake in this fraud whatsover, and yet ended up paying the price due to bank failures, stock market tanking, etc.Your way of thinking is very rational and your speech has some social responsibility in it, unfortunately, margins were and are the priority, at all costs. Thanks for your post.
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You can still get a Adjustable Rate Mortgage (ARM) but I believe the minimum term for the “teaser” rate (the advertised one you begin with) is 5 years. I think during the 2000a crisis they could be as short as a year or two, though I wasn’t a home owner then and admittedly don’t know for sure. All of the terms and possible changes are also very explicitly spelled out in your mortgage Closing Disclosure, which has been federally standardized so theoretically no one should be surprised by the deal they sign. Cancer Awareness GIVE Cancer The Boot T-Shirt I believe that the Adjustable Rate Mortgages (ARMs) played the role of juicing the number of mortgages made in the years leading up to the crash. By lenders offering very attractive rates and weak promises that the rate wouldn’t go up that much, individuals were more prone to accepting mortgages on riskier terms. If an individual were to only consider (or be offered) a fixed rate mortgage, it’s more clear whether or not the individual can afford it.