Since late 2003, Merrill Lynch & Co, Inc ("Merrill Lynch") has become the largest insurer in the world of collateralized debt obligations ("CDO,"). Assets debt totaled some of the riskiest tranches of mortgage-backed securities primarily related to subprime mortgages. With the collapse of the mortgage market and reduce liquidity in the summer of 2007, Merrill Lynch was caught with a significant amount of debt, which declined sharply in value. Disappointed with the leadership of CEO Stanley O'Neal, Merrill Lynch guide called for a series of meetings to assess the impact of the company on mortgage CDO, maintained and review their risk management strategy. For management, embarrassing cancellation seemed inevitable in the third quarter of 2007, but how many of these assets should be written and how fast? What are the implications for firms in making such announcements? "Hide
on Yanling Guan, Maria Ho Source: University of Hong Kong, 22 pages. Publication Date: October 23, 2008. Prod. #: HKU795-PDF-ENG
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