A disaster that followed it, but the lessons were not learnt it seems. Here we are again, but this time, Morgan Stanley plans to turn downgraded CDOs back into bonds, and get them the AAA rating that they deserve:
July 8 (Bloomberg) -- Morgan Stanley plans to repackage a downgraded collateralized debt obligation backed by leveraged loans into new securities with AAA ratings in the first transaction of its kind, said two people familiar with the sale.Alchemist: The best-known goals of the alchemists were the transmutation of common metals into gold (called chrysopoeia) or silver (less well known is plant alchemy, or "spagyric"); the creation of a "panacea", or the elixir of life, a remedy that supposedly would cure all diseases and prolong life indefinitely; and the discovery of a universal solvent.
NINJA: N.I.N.J.A. mortgage stands for "No-Income-No-Job-or-Assets".