Reversal: Junior Slices of CDO Paid First

November 2009
American Banker;11/16/2009, Vol. 174 Issue 206, p8
Trade Publication
The article reports that the financial services industry firm Goldman Sachs Group Inc. paid off at face value junior-ranking sections of collateralized debt obligations (CDO) rather than more senior classes of the derivative securities which are considered likely to default as a result. The company's motivation for the unusual decision is unclear.


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