Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America Highlight

So what did they do with the BBB part? That’s easy: they re-rated it as AAA paper! How? “They would take these BBBs, and then take the BBBs from the last five deals or so,” says Andy, “and put it into a CDO squared.” What’s a CDO squared? All it is is a CDO full of … other CDOs!