Series 7: 2.14.3.1. Collateralized Debt Obligations

Taken from our Series 7 Online Guide

2.14.3.1. Collateralized Debt Obligations

A collateralized debt obligation (CDO) is a security backed by a diversified pool of debt assets, including corporate bonds, bank loans, asset-backed securities, and mortgage-backed securities. When the underlying pool of securities is composed entirely of bond instruments, the CDO is called a collater

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