Collateralized Debt Obligations

14/04/2010 20:24


Collateralized Debt Obligations(CDO) is one of the financial products which are usually deal by financial institutions, credit institutions, etc.

These are securities that are created by collateralizing various similar debt obligations such as bonds and loans.

CDOs can be bought and sold. The buyer gains the right to a part of the debt pool’s principal and interest income