One of the main factors that spurred the 2008 financial crisis was the trading of securitized products without a clear understanding of the risks that those products bore. I argue that an appropriate regime of mandatory disclosure is the primary instrument regulators should refer to in order to correct the informational asymmetries that are present in the market for securities products. Subsequently, I take into consideration the CSA proposed legislation for the mandatory disclosure of securitized products and analyze its main components under the light of the principles of investor protection and market efficiency. I find that the new legislation should be welcome by market operators because it is a good balancing effort between the necessity to protect the investors and fostering the efficiency of the market.

One of the main factors that spurred the 2008 financial crisis was the trading of securitized products without a clear understanding of the risks that those products bore. I argue that an appropriate regime of mandatory disclosure is the primary instrument regulators should refer to in order to correct the informational asymmetries that are present in the market for securities products. Subsequently, I take into consideration the CSA proposed legislation for the mandatory disclosure of securitized products and analyze its main components under the light of the principles of investor protection and market efficiency. I find that the new legislation should be welcome by market operators because it is a good balancing effort between the necessity to protect the investors and fostering the efficiency of the market.

In the present work we study the securitized products of ?financial markets with focus on collateralized debt obligations and the impact of fi?nancial crisis on the markets in the world. First part the thesis is focused on the methodology of the reasons behind launching these products, the portfolio, tranches and further on mechanisms how these structures are working. In the second part the thesis teoretically describes the valuation methods for which the Markov chains and copula functions are used. Further on follows the practical part with output from the quantitative analysis and at the end the thesis describes the impacts on economics of di?fferent countries and practically introduces the stress testing as the precaution tool.