The Big Short
What are the banks doing with the CDO’s before the price goes down
What are the banks doing with the CDO’s before the price goes down
What are the banks doing with the CDO’s before the price goes down
Banks used CDO's to off-load debt from their balance sheets, enabling them to lend more money and do more business. They sold CDO tranches to a range of investors across the financial system. They would generally sell before the price goes down.