FOX Translator
No data currently available.
No data currently available.
Welcome to the major leagues of debt. Collateralized debt obligations, almost always referred to as a CDOs, are horrendously
complicated deals that often leave anyone without a MBA wondering what was put into these CDOs.
The first thing to
understand about bonds, (aka debt) is that bonds are often backed by something else. Think about your home mortgage. If you
don't pay your mortgage, the bank can take the house. You end up homeless, and the bank sells the house to pay off the rest
of that mortgage. There is something "backing" that mortgage; something lender can fall back on, if you don't pay your bills
like a good human being. That's called collateral.
CDOs are one flavor of an entire sector of investing called structured
finance, and they are also backed. CDOs, in the simplest concept, are just bonds backed by something else. In most cases,
a CDO is backed by a collection of various types of debt. CDOs can be home mortgages, or other types of debt like credit cards,
auto loans, and personal loans. Most of these types of debt are usually considered a bit more risky and they don't have the
backing that a home loan does. So, if you think it through, you can imagine that CDOs are usually considered a risky investment.
To take a step further, understand that CDOs have multiple flavors within each CDO. These flavors are called tranches. If you've taken French, you might recognize the word, it means "slice" or "portion." Each slice of that CDO you invest in is a little different and carries different amounts of risk.
You could invest in the lowest risk tranche of the CDO, which would
provide you lower risk. But, you don't get a good return on that investment. Or, you can be the heroic adventurer of bonds
and invest in the lowest-grade tranche of the CDO. You'll make an amazing return, but if the economy even looks at you wrong,
you might lose the entire investment.
CDOs aren¿t easy, and are almost always invested in by mutual funds, insurance
companies and hedge funds. As an individual investor, you will probably not come across a CDO you can participate in.
Home / Markets / Industries / Industrials
Monday, May 19, 2008
Cash Technologies Subsidiary Recovers Estimated $1.25 Million in Revenues
Comtex
LOS ANGELES, CA, May 19, 2008 (MARKET WIRE via COMTEX) ----Cash Technologies, Inc. (AMEX: TQ) ("Cash Tech") announced today that its CPI Holdings, LLC subsidiary ("CPI"), which completed its acquisition of certain assets of Champion Parts, Inc. (the "Champion Assets") on May 5, 2008, has made significant progress recovering former Champion customers, providing approximate purchases of $1.25 million to $1.5 million over the next 12 months according to customer estimates.
Champion was the leading remanufacturer of automotive fuel system components in the U.S. before its bankruptcy in October 2007, with revenues of approximately $20 million per year. Champion's customers included the top five auto parts retailers in the U.S. and dozens of smaller distributors, with combined retail distribution of more than 20,000 retail stores. The recently recovered customers include one of the top five retailers.
Jerry Bragiel, President of CPI, stated, "I'm pleased with the rapid progress we've made in the two weeks since restarting the Champion business. Customers are returning to take advantage of our extensive catalog, history of quality and consumer demand. We believe we will be doing business with most of Champion's former customers in the coming months." Mr. Bragiel was CEO of Champion Parts, Inc. prior to the events that caused the company's bankruptcy, and oversaw 9 years of profitability. He brings with him three other experienced former members of Champion's senior management.
Matters discussed in this release include forward-looking statements within the meaning of the "Safe Harbor" provisions of the PSLRA that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include revenues not reaching expected levels, unexpected competition within the automotive products industry, anticipated improvements in operating costs and net operating margins not being realized, risks related to management and labor, activity levels in the securities markets and other risk factors disclosed in Cash Tech's reports to the Securities and Exchange Commission, including its Forms 10-QSB and Forms 10-KSB on file with the SEC.
Media Contact: Ed King 213-745-2000 Ext. 114 Email Contact
SOURCE: Cash Technologies, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=2383F32D43F37302
Copyright 2008 Market Wire, All rights reserved.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
FOX Business Tools
Sponsored By
