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A Synthetic CDO (collateralized debt obligation) is a variation of a CDO that generally uses credit default swaps and other derivatives to obtain its investment goals.〔Lemke, Lins and Picard, ''Mortgage-Backed Securities'', §5:16 (Thomson West, 2014).〕 As such, it is a complex derivative financial security sometimes described as a bet on the performance of other mortgage (or other) products, rather than a real mortgage security. The value and payment stream of a synthetic CDO is derived not from cash assets, like mortgages or credit card payments — as in the case of a regular or "cash" CDO — but from premiums paying for credit default swap "insurance" on the possibility that some defined set of "reference" securities — based on cash assets — will default. The insurance-buying "counterparties" may own the "reference" securities and be managing the risk of their default, or may be speculators who've calculated that the securities will default. Synthetics thrived for a brief time because they were cheaper and easier to create than traditional CDOs, whose raw material, mortgages, was beginning to dry up.〔 In 2005 the synthetic CDO market in corporate bonds spread to the mortgage-backed securities market,〔McLean, Bethany and Joe Nocera, ''All the Devils Are Here: The Hidden History of the Financial Crisis'' Portfolio, Penguin, 2010, (p.264)〕 where the counterparties providing the payment stream were primarily hedge funds or investment banks hedging, or often betting that certain debt the synthetic CDO referenced — usually "tranches" of subprime home mortgages — would default. Synthetic issuance jumped from $15 billion in 2005 to $61 billion in 2006,〔(FINANCIAL CRISIS INQUIRY REPORT ), p.191〕 when synthetics became the dominant form of CDO's in the US,〔 valued "notionally"〔the total of the underlying debt of synthetics on which investors were betting〕 at $5 trillion by the end of the year according to one estimate.〔Zuckerman, Gregory, ''(The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson ... )'', Broadway Books, 2009, p.176〕 Synthetic CDOs are controversial because of their role in the subprime mortgage crisis. They enabled large wagers to be made on the value of mortgage-related securities, which critics argued may have contributed to lower lending standards and fraud.〔(NYT-Banks Bundled Bad Debt, Bet Against It, and Won|Gretchen Morgenson| December 24, 2009 )〕 Synthetic CDOs have been criticized as serving as a way of hiding short position of bets against the subprime mortgages from unsuspecting triple-A seeking investors,〔Quote: "the other side of the bet wasn't someone who had investigated the mortgage-backed security — like Burry and Redleaf did — and thought they were betting on its performance. It was someone who was buying a (A ) rating and thought he couldn't lose money" (p.266) McLean and Nocera, ''(All the Devils Are Here )'' 2010〕 and contributing to the 2007-2009 financial crisis by amplifying the subprime mortgage housing bubble.〔Quote: the synthetic CDOs "turned that keg of dynamite (loans ) into the financial equivalent of a nuclear bomb", (p.263) McLean and Nocera, ''(All the Devils Are Here )'' 2010〕〔quote="The losses were magnified by derivatives such as synthetic securities" p.xvi (FINANCIAL CRISIS INQUIRY REPORT )〕 By 2012 the total notional value of synthetics had been reduced to a couple of billion. ==History== In 1997, the Broad Index Secured Trust Offering (BISTRO) was introduced. It has been called the predecessor to the synthetic CDO structure.〔(【引用サイトリンク】url=http://www.investopedia.com/terms/b/broad-index-synthetic-trust-offering.asp )〕 From 2005 through 2007, at least $108 billion Synthetic CDOs were issued, according to the financial data firm Dealogic. The actual volume was much higher because synthetic CDO trades are unregulated and "often not reported to any financial exchange or market".〔 Journalist Gregory Zuckerman, states that "according to some estimates", while there "were $1.2 trillion of subprime loans" in 2006, "more than $5 trillion of investments", i.e. synthetic CDOs, were created based on these loans.〔 Some of the major creators of Synthetic CDOs who also took short positions in the securities were Goldman Sachs, Deutsche Bank, Morgan Stanley, and Tricadia Inc.〔 In 2012 the total notional value of Synthetic CDOs arranged was only about $2 billion.〔 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Synthetic CDO」の詳細全文を読む スポンサード リンク
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