Value investing for beginners
Our companies and markets editor, Richard Beddard, offers a succinct guide to value investing.
Word of the Day
Collateralised Debt Obligations are a type of structured asset-backed security whose value and payments are derived from a portfolio of fixed-income underlying assets. In the case of CDOs which have been blamed for catalysing the Credit Crunch these were enormous collections of mortgages which were split into tranches and tradable – right up to the point where the underlying assets – ie properties underwritten by the mortgages – could not be sustained. Then the CDO, and indeed the homes they covered, were no longer worth anything.