On February 15, 2006, Jeffrey Prince at Citi said: "Valuing a CDO is much like valuing a house". Does that mean you get a crooked appraiser and start building a pyramid by ramping up inter-bank sales of CDO's. I leave you with an interesting read for a Sunday and maybe modivation to send our little wiz-kid Jeffrey an email.....
Citi was playing "Flip that house" with their entire CDO portfolio!
(Hat tip to MarketMaker for the insiders document)
Citibank General Review of CDO Valuation Methods
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