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Cash CDOs involve a portfolio of cash assets, such as loans, corporate bonds, asset-backed securities or mortgage-backed securities. Ownership of the assets is transferred to the legal entity (known as a special purpose vehicle) issuing the CDO's tranches. The risk of loss on the assets is divided among tranches in reverse order of seniority.
Collateralized loan obligations (CLOs) are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. A CLO is a type of collateralized debt obligation, or CDO.
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt ...
In finance, securities lending or stock lending refers to the lending of securities by one party to another.. The terms of the loan will be governed by a "Securities Lending Agreement", [1] which requires that the borrower provides the lender with collateral, in the form of cash or non-cash securities, of value equal to or greater than the loaned securities plus an agreed-upon margin.
Marketable collateral is the exchange of financial assets, such as stocks and bonds, for a loan between a financial institution and borrower.To be deemed marketable, assets must be capable of being sold under normal market conditions with reasonable promptness at current fair market value.
The cash value of the bond will be credited to your checking or savings account within two business days of the redemption date. A minimum of $25 is required to redeem an electronic bond.
The "principal-only" bonds would sell at a discount, and would thus be zero coupon bonds (e.g., bonds that you buy for $800 each and which mature at $1,000, without paying any cash interest). These bonds would satisfy investors who are worried that mortgage prepayments would force them to re-invest their money at the exact moment interest rates ...
An asset-backed security (ABS) is a security whose income payments, and hence value, are derived from and collateralized (or "backed") by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually.