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.

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Thursday, August 07, 2008

Back-To-School Advertisers Cast Online Net

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Comtex

Aug 07, 2008 (BUSINESS WIRE) ----For kids and teens, back-to-school season every fall means the chance to reinvent themselves with a fresh new wardrobe, the hottest backpack, and colorful school supplies. For marketers, this crucial retail season means the launch of new advertising campaigns.

Given the ever-evolving face of media, where do kids and teens go to discover what's hip, what's hot, and what's "must-have" for the playground, classroom, and cafeteria? And, equally important, how do advertisers reach this audience on their home turf?

Kids and teens now spend more time online than engaged with any other form of media. According to comScore Media Metrix, in the U.S. alone, over 35 million 6-to-17 year olds use the Internet every month. Teens alone now have a total annual aggregate income of $80 billion, while the buying power of kids is expected to total over $21 billion in 2010.

"Rather than blindly follow the cues of Madison Avenue, the generation of kids that grew up online are actively creating and pollinating marketing trends themselves," says Matt Freeman, CEO of GoFish Corporation, an online network of websites specially designed for kids, teens, and their families. "Kids are communicating about fashion using the power of community sites, chatting about trends in virtual worlds, and accessorizing their avatars online."

Recognizing that kids, teens, and their co-viewing parents represent a vital consumer demographic, GoFish launched an entertainment and media network focused on kids, teens, and moms. The Network reaches over 23 million unduplicated online users domestically and 71 million worldwide and includes sites like Miniclip, Cartoon Doll Emporium and WeeWorld. GoFish currently ranks as the third largest U.S. youth opportunity and a top five "mom" opportunity for blue-chip advertisers.

It was no surprise then, when Sears launched the back-to-school campaign for this fall, it turned to GoFish. The network developed immersive online experiences to reach kids in engaging new ways including customized back-to-school branded experiences that include a virtual Sears clothing store and runway contest on Cartoon Doll Emporium and WeeWorld Sears WeeMee assets and contest.

"Savvy retailers," says Mr. Freeman, "are beginning to realize that reaching this all-important audience requires more than simple traditional print and broadcast advertising." Visit www.gofishcorp.com to learn more.

SOURCE: GoFish Corporation