Collateralised Debt Obligations (CDOs) Were Responsible for Significant Damage and Disruption

Multiple Choice

Collateralised debt obligations (CDOs) were responsible for significant damage and disruption to global financial markets as:

A) investors accepted the recommendations of CDO arrangers and rating agencies
B) many investors were unable to assess the fairness of prices
C) the securities' cash flow was based on cash flows from other financial securities and not the cash flows from real assets
D) the CDOs' cash flows were based on cash flows from real assets and not from other financial securities