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CDOs. What are they?

CDO’s or in long term collateralized debt obligations are investment products sold to investors which are backed by the number of loans (auto loans, mortgages, corporate debt). It is the specific type of derivative because it derives value from another underlying asset. The underlying assets of CDOs are collateral which essentially and gives the value to the CDOs, and therefore that is why the CDOs are called “collateralized”.

11-17 November. News digest

By Artem Zavarin and Simon Bohovich

Monday, November 11.

US stocks were under pressure due to the uncertainty over trade talks and Hong Kong’s strenuous political situation. Stocks in Hong Kong suffered their biggest one-day drop because of the growing protest chaos in the city.

Tulip Mania in the 17th century as the first financial bubble in history

By Antanas Jablonskis & Krišjānis Krakops

When most people think about the Netherlands, they think about, among other things, the tulip. So, it may come as a surprise for many to find out that not only does the tulip not originate from there but was also responsible for the first financial bubble in history. In the years 1634-1637, the tulip market experienced a drastic increase in prices followed by a sudden crash in February 1637. Until recently, the story of “tulip mania” has been presented as a parable about human greed and market irrationality, brought up whenever there is trouble in the economy. But some have suggested that view might not be true and that our perception of this period in history is largely misconstrued, based upon later, exaggerated stories. This article explores the environment in which the bubble took place, what made the tulip ripe for such a bubble, and how these events are perceived today.

European Investing Climate After Brexit – Ideas And Suggestions

On March 29, 2017, the British voted to leave the EU. As a consequence of that political decision, London, currently the financial center of Europe, is likely to lose some of its influence and possibly even give up its title. Which cities are to gain because of Brexit? What will attract the investments from London to other cities, that remained in Europe? What makes a good investment climate in general? We will try to answer these and related questions in our article.