Broad Index Synthetic Trust Offering - BISTRO

  

Categories: Banking, IPO

The OG of the CDOs that led to TARP.

BISTROs were one of the first instruments to ever allow for the synthetic replication of risk associated with debt obligations (loans, bonds, etc.) in a way that allowed those risks to be pooled and traded among investors.

BISTROs were created in the late 1990s. The Fed, led by Alan Greenspan, agreed to let banks use regulatory capital for these offerings. They became so popular among investors that more, similar vehicles were introduced, and the market for them grew more than 10x over the ensuing decade (can you say “irrational exuberance?”), culminating with The Great Recession and near collapse of the U.S. banking system in 2007.

Thanks, Greeny!

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Finance: What is a Living Trust?35 Views

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Finance allah shmoop what is a living trust Well a

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regular old trust is a legal vehicle into which assets

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are placed so that their distribution or rather who gets

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what from them when the owner of that trust dies

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is legally clear How does that matter Like at all

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Sounds like a lot of paperwork for more or less

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the privilege that pay lawyers well if you had don't

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have clarity as to who gets what When you die

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the government often has the right to tax the crap

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out of whatever you have left in the form of

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filtering through it in a process called probate and it's

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being like probed in a not a good way Anyway

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probate is basically a process of figuring out if in

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fact your will is your will And if you are

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in fact will so living trust is one that lives

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while you do when you die it gets distributed and

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beyond Reducing taxes and giving clarity is the how your

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dearly departed spirit wants its assets distributed A living trust

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can also adjust to your moods Living trust our revokable

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which means you can change your mind and revoke it

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I'ii take it back after you die it becomes irrevocable

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Unless you can legitimately send your spirit back from the

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dead and convince a judge to let a lawyer amend

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it And you can't that's just a joke you're living

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trust basically comprises three sets of people you are trusting

01:22

in the form of bringing them inside your financial tent

01:26

Well the first player is you that is you are

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a separate party in this some party And it is

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you who creates the trust and divines who gets what

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when and how you kaname yourself and potentially your spouse

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as trustees beneficiaries That means that until you die at

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least you are in charge And then your spouse if

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you have one is in charge after you go you

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know kick the bucket The likely successor trustees are your

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kids So yeah the second player is the trustee the

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person in charge of your assets after you die and

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it's their job to be sure that your assets are

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disposed of the way you want him to be Well

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the trusty also deals with conflicts defending the wishes in

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your trust The way that person presumes you'd want them

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Defended nor example you're loving spouse the fifth one the

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one who actually loved you for you all right the

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third component of living trust the beneficiaries the ones who

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get the one point three million dollars in proceeds from

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the sale of your mansion in palo alto Yeah this

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one it says nike on it That shoebox thing Yeah

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they're the ones who get the house the custom range

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rover with pure gold rims and passenger side ejector seat

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And all of this is done in large part so

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that your airs don't have to go through probate which

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saves them a ton of time and money in grief

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Your heirs don't want to have to live in their

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cars while your assets wend their way through the government

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process he's over years And the will does not have

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to get filed publicly which means that even after you

02:47

are dead you can maintain privacy Generally the more assets

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you have the more important it is to have a

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living trust If you have booked guests now probably doesn't 00:02:55.67 --> [endTime] matter

Up Next

Finance: What is Inter Vivos?
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Inter-vivos translates to "between the living." It's an estate-planning vehicle that allows a trustor to transfer assets to trustees.

Find other enlightening terms in Shmoop Finance Genius Bar(f)