Jared Vennett was a former bond salesman at Deutsche Bank, who discover Michael Burry credit default swap. Vennett tried to do a default swap with the Deutsche Bank, but the bank denied. After being denied by Deutsche Bank, Vennett tried to do it with Morgan Stanley Bank but accidentally contacted Frontpoint instead of the actual bank. Mark and Jared join Vennett in short on the housing market. Baum then recognizes the poorly structured CDOs that had received an AAA bond rating and is inflating the housing market bubble even bigger. Baum kept looking into the CDOs and even went to Standard and Poor's and found out they are complete crap. After seeing the questionable CDO market, Baum saw that it will lead to the collapse of the US economy. What I found out during this portion of the movie is how tranches work. Vennett explanation using Jenga block was a great way to see how mortgage-backed securities were being rated and placed in the tower. Removing the lower rated bonds when it fails to cause the tower to become less sturdy. Which means that the top-rated bond does not have that support it once had to be valuable in the
Jared Vennett was a former bond salesman at Deutsche Bank, who discover Michael Burry credit default swap. Vennett tried to do a default swap with the Deutsche Bank, but the bank denied. After being denied by Deutsche Bank, Vennett tried to do it with Morgan Stanley Bank but accidentally contacted Frontpoint instead of the actual bank. Mark and Jared join Vennett in short on the housing market. Baum then recognizes the poorly structured CDOs that had received an AAA bond rating and is inflating the housing market bubble even bigger. Baum kept looking into the CDOs and even went to Standard and Poor's and found out they are complete crap. After seeing the questionable CDO market, Baum saw that it will lead to the collapse of the US economy. What I found out during this portion of the movie is how tranches work. Vennett explanation using Jenga block was a great way to see how mortgage-backed securities were being rated and placed in the tower. Removing the lower rated bonds when it fails to cause the tower to become less sturdy. Which means that the top-rated bond does not have that support it once had to be valuable in the