The talk of the summer up and down Wall Street was the mortgage crisis. At the heart of the problem are CDOs – collateralized debt obligations, which are securities backed by a pool of bonds and loans. Dylan took to the streets of Times Square to find out if the average passerby knew what a CDO was. Check out the video:
CDOs are central to brokers’ earnings next week. Guy Adami thinks that banks’ exposure to CDOs could present a problem for some of them.
The earnings picture will hopefully provide some clarity as to if these companies even know what their debt obligations really are, Jeff Macke said.
Got something to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to firstname.lastname@example.org.
Trader disclosure: On Sept. 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (INTC), (SWY); Najarian owns (CREE), (GS); Finerman’s Firm Owns S&P 500 Puts, Russell 2000 Puts, (BEAS), (ASD), Is Short (LEAP); Finerman’s Firm and Finerman Own (HD)