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by shrewduser 3815 days ago
there's no difference.

they weren't priced correctly is a perfectly reasonable thing to say, and synonymous with they lied about their level of risk.

1 comments

CDO's are huge and complicated deals. All the little details are documented in the prospectus. Granted it's 700 pages long on average, but maybe people shouldn't be buying 2-3 billion USD securities if they don't have the capacity to understand and model them properly.
there aren't many humans who can grok that kind of info and truly understand it, that's why they were supposed to be rated accurately by ratings agencies.