CDO became almost a dirty word at the height of the financial
crisis. In the US, collateralized debt obligations fell apart
as the subprime crisis swept in, leaving defaults, lawsuits and
foreclosures in its wake.
Structured finance: The big fix
CDOs took a hammering during the crisis, but a new plan to use them in Colombia could help bridge a huge funding gap
Yet today, plans are being advanced to put such an
instrument to work in Latin America, this time to fund
The move is unprecedented. But repairing Colombia's decrepit
highway system is seen as a momentous task that calls for an
equally ambitious financing framework.
The country's plans to roll out more than 8,000 kilometers
of fresh tarseal are set to cost around $26 billion. That makes
it Latin America's largest ever highway project.
It is a crucial program for the country to bring down the
cost of its exports. At $2,500, bringing a container from
Bogotá to the coast costs around twice what it should to
be globally competitive....
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