My analogy is based on the fact that nobody could see what was inside CDOs nor did they want to see, all they wanted to do was pass them on to the next sucker. It was all fun until it all blew up. LLM operators behave in the same way with copyrighted material. For context, read https://nymag.com/news/business/55687/
Absolutely not true. Where did you get that idea? When pricing the bonds from a CDO you get to see the initial collateral. As a bond owner, you receive monthly updates about any portfolio updates. Weirdly, CDOs frequently have more collateral transparency compared to commercial or residential mortgage deals.
