Collateralized Debt Obligation - CDO

Collateralized Debt Obligation - CDO
An investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds.

Similar in structure to a collateralized mortgage obligation (CMO) or collateralized bond obligation (CBO), CDOs are unique in that they represent different types of debt and credit risk. In the case of CDOs, these different types of debt are often referred to as 'tranches' or 'slices'. Each slice has a different maturity and risk associated with it. The higher the risk, the more the CDO pays.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Collateralized Fund Obligation — A Collateralized Fund Obligation or (CFO), in finance, is a form of securitization involving private equity fund or hedge fund assets, similar to collateralized debt obligations. CFOs are a structured form of financing for diversified private… …   Wikipedia

  • Collateralized Loan Obligation — Eine Collateralized Loan Obligation ist ein forderungsbesichertes Wertpapier, das durch Unternehmenskredite (engl. Loan) gesichert wird. Diese Kredite stammen oft von Geschäftsbanken, die das Konstrukt CLO wiederum nutzen, um das vergebene… …   Deutsch Wikipedia

  • Debt obligation — may refer to: Collateralized debt obligation Constant Proportion Debt Obligation This disambiguation page lists articles associated with the same title. If an internal link led you here, you may wis …   Wikipedia

  • Constant Proportion Debt Obligation - CPDO — A type of synthetic collateralized debt instrument that is backed by a debt security index, such as an iTraxx index. CPDOs were first created by ABN AMRO in 2006, which sought to create a high interest bearing instrument that also contained the… …   Investment dictionary

  • obligation — ob·li·ga·tion /ˌä blə gā shən/ n 1: a promise, acknowledgment, or agreement (as a contract) that binds one to a specific performance (as payment); also: the binding power of such an agreement or indication held that the amendment did not… …   Law dictionary

  • Collateralized Borrowing And Lending Obligation - CBLO — A money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of the loan. Collateralized borrowing and lending obligations (CBLOs) are used by those who have been phased out of or heavily… …   Investment dictionary

  • Collateralised Loan Obligation — In diesem Artikel oder Abschnitt fehlen folgende wichtige Informationen: Entwicklungsgeschichte Du kannst Wikipedia helfen, indem du sie recherchierst und einfügst. Eine Collateralized Loan Obligation i …   Deutsch Wikipedia

  • Subordinated debt — In finance, subordinated debt (also known as subordinated loan, subordinated bond, subordinated debenture or junior debt) is debt which ranks after other debts should a company fall into receivership or be closed.Such debt is referred to as… …   Wikipedia

  • Unsecured debt — In finance, unsecured debt refers to any type of debt or general obligation that is not collateralized by a lien on specific assets of the borrower in a bankruptcy or liquidation.In the event of the bankruptcy of the borrower, the unsecured… …   Wikipedia

  • Dodd–Frank Wall Street Reform and Consumer Protection Act — Full title An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers… …   Wikipedia

  • Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.