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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).
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 ...
Many CDOs are collateralized by various types of mortgage-backed securities and other mortgage-related assets. [7] An extension of these CDOs are "synthetic" CDOs which are collateralized by credit default swaps and other derivatives. [8] Collateralized bond obligations are collateralized debt obligations backed primarily by corporate bonds.
Chalk this one up as "what will they think of next" in the world of exchange-traded funds because there's now an ETF dedicated to collateralized loan obligations (CLOs).What Happened: Courtesy of ...
The secondary mortgage market is the market for the sale of securities or bonds collateralized by the value of mortgage loans.A mortgage lender, commercial bank, or specialized firm will group together many loans (from the "primary mortgage market" [1]) and sell grouped loans known as collateralized mortgage obligations (CMOs) or mortgage-backed securities (MBS) to investors such as pension ...
Because the government spends more money than it collects in tax revenue, lawmakers need to periodically tackle the issue -- a politically difficult task, as many are reluctant to vote for more debt.
A collateralized mortgage obligation (CMO) is a type of complex debt security that repackages and directs the payments of principal and interest from a collateral pool to different types and maturities of securities, thereby meeting investor needs. [1]