[spyspy]

For anyone whose knowledge of this starts and ends with The Big Short, CDOs are not inherently bad. They're just a structure for divvying up assets based on risk. The problem up to 2008 was that the risks were downplayed/hidden by the banks and the credit rating agencies.

[eru]

We do the equivalent of CDO to our networks at Google. (Ie tcp can't deal with packet loss, so needs the best tranche; especially if user facing. Some long running copy operations with fountain codes only care about total throughput, not lost packages, so get the `equity' tranches.)