I have 4 billion in residential CDOs, collateralized debt obligations.

CDOs, collateralized debt obligations, are derived from mortgage backed securities.

The 400 million senior tranche we raised from 1000 senior securities, collateralized debt obligations.

And I think I touched on it in the video on collateralized debt obligations.

So that's what we're going to show you in the presentation on collateralized debt obligations.

But what you read about the most right now in the newspapers is mortgage backed collateralized debt obligations.

We would look the other way when Bear Stearns is creating collateralized debt obligations, or AlG is writing credit default swaps.

This is actually a mortgage backed collateralized debt obligation.

You might just want to watch the video on mortgage backed securities and collateralized debt obligations if you need a refresher there.

So this is a form of a collateralized debt obligation.

And then this is the thing that I really wanted to highlight, that it also had 4 billion of residential collateralized debt obligations.

level of confusion and show you what a collateralized debt obligation is.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

We fulfill our obligations.

Or it has to be collateralized by some asset.

What debt?

Gambling debt?

So the person who constructed this whole collateralized debt obligations and who sold these tranches to the public markets, and this process by the way is called securitization, because you're creating securities out of these assets that you sell to everyone, maybe the Chinese, or whoever, sovereign wealth funds.

We are stuck with its obligations.

What are the immediate supply obligations?

We strike debt!

I can no longer fulfill my obligations.

And of Abraham, who fulfilled his obligations

They're actually obligations of the U.S. government.

I've got no moral obligations here, Michael.

He had obligations that he couldn't abandon.

But this is debt. 80 million of debt right here.

And even within the debt, you'll have different layers of debt.

And it puts some obligations on those operators.

He ran into debt.

He guaranteed my debt.

'We are debt loaded

Well, what about debt?

This is the debt.

We have the debt.

Now debt is interesting.

He had no debt.

I had some debt.

Our debt kept growing.

I've paid my debt.

And it's called debt.

You can issue debt.

It's the debt holders.

Thus the national debt.

You're in debt? Yes.