collateralized debt obligation

Definitions (2)

1. CDO. An investment-grade security backed by a pool of various other securities. CDOs can be made up of any type of debt, in the form of bonds or loans, and usually do not deal with mortgages. CDOs, like CBOs and CMOs, are divided into slices, each slice is made up of debt which has a unique amount of risk associated with it. CDOs are often sold to investors who want exposure to the income generated by the debt but do not want to purchase the debt itself.

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You need to make sure that you understand everything in your collateralized debt obligation so that you no what you must.

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In the hay day of sub prime mortgages, a lot of lenders were reducing risk of bad loans by offering collateralized debt obligation to investors.

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Simon knew that his collateralized debt obligation was sky high when he began receiving notices from the banks that his loans were due immediately upon receipt of the information.

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secondary mortgage market asset backed commercial paper