Search results
Results From The WOW.Com Content Network
A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). [1] Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS).
CMFB – Committee on monetary, finance and balance of payments statistics; CMO – Chief Marketing Officer; COB – Close of Business; COC – Cost of Credit [2] or Cost of Capital [3] COD – Cost of Debt [4] or Cash on Delivery; COE – Center of Excellence or Cost of Equity [5] COGS – Cost of Goods Sold; Corp. – Corporation; COO ...
1 CDO managers. 2 CDO sponsors. 3 References. Toggle the table of contents. ... Maples Finance [4] Wrightwood Capital [4] JE Robert Cos [4] Brascan Real Estate ...
The reason behind the creation of CLOs was to increase the supply of willing business lenders, so as to lower the price (interest costs) of loans to businesses and to allow banks more often to immediately sell loans to external investor/lenders so as to facilitate the lending of money to business clients and earn fees with little to no risk to themselves.
CDO-Squared is an investment in the form of a special-purpose entity (SPE) with securitization payments backed by collateralized debt obligation tranches.A collateralized debt obligation is a product structured by a bank in which an investor buys a share of a pool of bonds, loans, asset-backed securities, and other credit instruments.
A CDO only becomes a derivative when it is used in conjunction with credit default swaps (CDS), in which case it becomes a Synthetic CDO. The main difference between CDOs and derivatives is that a derivative is essentially a bilateral agreement in which the payout occurs during a specific event which is tied to the underlying asset.
Jordan Weissmann is a senior reporter at Yahoo Finance. Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more
A typical single-tranche CDO is a note issued by a bank or an SPV where in addition to the credit risk of the issuing entity, the investors take credit risk on a portfolio of entities. In return for taking this additional credit risk on the portfolio, the investors achieve a higher return than the market interest rate for the corresponding ...