Collateralized Debt Obligation
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Definition:
Collateralized debt obligations (CDOs) are investment vehicles comprised of a portfolio of credit risk exposures, which are segmented into different risk classes/tranches with differing risk, maturity, and returns. CDO portfolios can be made up of cash assets (Cash CDOs) such as bonds and loans or may be synthetic based (Synthetic CDOs) which are backed by credit default swaps (CDS).
Related Concepts:Collateralized Mortgage Obligation
Subprime Mortgage Crisis
Available Positions Related to Collateralized Debt Obligation:Asset & Investment Management jobs
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