“I have not been able to understand it. The moment I read Goldman structured a deal called Abacus which invested in synthetic CDOs, it was enough to hide for cover. It sounded so similar to Enron which gave fancy names to all its shady investments.”
This is how Amol Agrawal begins his post on the Goldman Abacus deal offered to its clients IKB, a large German bank, and ACA Capital Management, a New York-based investment firm.
Now, the post outlines the various types of securities in the Goldman Sachs case but the complexity of these securities , for the first time reader, (and for those who revisit the topic, like me), can be mind-boggling.