We would create incentives for securitization.

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

Central Europe, unsecured.

I have a whole video on mortgage backed securities.

And because it's a junkier rating, no one is going to want to buy it.

My next presentation, I'm going to take it to a further

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

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

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.

They feed me info.

Interest expense.

Of course, if enough people start defaulting, even these people start to get hurt.

Leverage.

Now let's say that Company x has also borrowed some money.

You can sell shares.

Bonds were issued to finance a war.

They are one of the first people to get their money.

And the bank thinks it got a great deal.

I've just lost my job.

What we are going to do is go buy things like highly rated mortgage backed securities, or things like commercial paper, AAA corporate debt, so that those things, the interest on those things goes down.

Bellwether signs again.

We found a social security number, a bank account in the Caymans, credit cards, and a flight itinerary out of the country for tomorrow morning.

So you know these these are loans to really solvent or very creditworthy companies.

levels of seniority.

This is the equity...

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

They can no longer jack up your premiums without reason.

And you end up with a mortgage backed security.

It might have been structured so that Corporation A right here, before even issuing the bonds, they include this insurance with the bond.

Was it a correct decision?

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

These are the assets that our five buddies have together.

So this one might be called senior secured debt.

Because that's essentially what a credit default swap is, it's insurance on debt.

Bonds were issued to finance a war.

The company, wholly owned by NTT, is doing well.

The company will hold a presentation of the new model tomorrow.

Is a correspondent sent over by a communication agency

I said, who gets the money?

And in the meantime, it's going to pay me interest.

A common way to finance a budget deficit is to issue bonds.

So in the example, we used to have 500 million shares.

And I kind of jumped the gun a little bit.

He said he didn't know. He would ask around.

You will be pooling from 60 Fortune companies.