Bistro (credit system)

Bistro is an acronym and stands for English Broad Index Secured Trust Offering . The idea goes back to Bill Demchak, a manager at JP Morgan . Bistro is based on credit insurance, so-called Credit Default Swaps (CDS). Several credit swaps are bundled and sold to special purpose vehicles (SPVs). The special purpose vehicles are financed on the one hand by securitizing the bistro securities in large tranches to large investors and on the other hand by paying premiums from credit insurance.

In addition to the securitization of risky real estate loans ( subprime market ), the model is considered to be the main cause of the economic and financial crisis of the early 21st century.

It is estimated that the total value of this model at the end of 2008 was $ 57 trillion.

See also

• Financial crisis from 2007
• Collateralized Debt Obligation (CDO)
• Asset-Backed Security (ABS)
• Mortgage Backed Securities (MBS)

Individual evidence

1. ↑ Beat Balzli, Klaus Brinkbäumer, Jochen Brenner, Ullrich Fichtner, Hauke ​​Goos, Ralf Hoppe, Frank Hornig, Ansbert Kneip: The bank robbery . In: Der Spiegel . No. 47 , 2008, p. 49 ( online ).